Hexaware Q2 PAT jumps 11.4%, revenues up 4% QoQ

PUNE: Mumbai-headquartered Hexaware Technologies reported a profit after tax of Rs 111.4 crore for the quarter ended September 30, up 11.4 per cent over the previous quarter and marginally lower by 0.1 per cent over the corresponding quarter last year.

Revenues for the quarter were up 4 per cent sequentially at 904.1 crore, and up 10.5 per cent year-on-year. EBIDTA margins were up by 210 basis points quarter on quarter.

In dollar terms, revenue for the quarter was $135.2 million and profit after tax, $16.7 million. The Hexaware board also approved a share buyback of up to 5.69 million shares at a price of Rs 240 per share for an aggregate amount not exceeding RS 136.7 crore. It also declared a third interim dividend of Re 1 for the quarter.

“This quarter, Hexaware witnessed an excellent all round growth. Profitability outgrew revenue with EBITDA margins up 210 bps QoQ. A culture of automation first, focused growth aspirations and client centric innovation remain fundamental to the company,” said Atul Nishar, Chairman, Hexaware Technologies.

Americas led the geographic growth in the quarter with 5.6 per cent QoQ and 10.4 per cent YoY growth. Banking and Financial Services grew at 8.6 per cent QoQ and 19.5 per cent YoY. Infrastructure Management Services (IMS) meanwhile grew at 11.2 per cent QoQ and 29.7 per cent YOY while Business process Services (BPS) grew at 9.6 per cent QoQ and 28.4 per cent YoY.

“We continue to build solid momentum and volume growth across multiple verticals and service lines. Our strategy of Shrink IT, Grow Digital is uniquely differentiated from the traditional service providers and we have confidence that we will deliver differentiated performance,” said R Srikrishna, CEO , Hexaware Technologies.

Jimmy Mahtani, Non-Executive Director has been appointed as the Vice Chairman of the Board. Bharat Shah and Dileep Choksi, Independent Directors were reappointed for a period of three years w.e.f October 17, 2016.