Hexaware Q3 net profit up 13% sequentially

MUMBAI: Mid-sized IT company Hexaware Technologies on Tuesday reported a little over 3% sequential growth in its revenues for the third quarter ended September at $125 million and said it was on track to meet its goal of outperforming the industry’s growth rate.

In rupee terms, the Mumbaiheadquartered company’s revenues rose 6% sequentially to Rs 818.4 crore while its profit after tax rose 12.9% sequentially to Rs 111.6 crore, helped by a 100 basis point improvement in EBITDA margin.

"Growth was broad-based. Europe came back to growth and verticals such as banking and financial services and manufacturing performed well. I think we are on track to our goal to outperform Nasscom’s target," Hexaware CEO R Srikrishna told ET.

The National Association of Software and Services Companies expects the industry to grow 12%-14% in FY16.

Though Srikrishna would not comment on whether the industry would meet that target, he said a few companies, including Hexaware, would likely grow above that level.

Atul Nishar, chairman of Hexaware Technologies, said, "This quarter the company has for the first time achieved a milestone of a run rate of half a billion dollar revenue."

Unlike most Indian IT firms, Hexaware follows a calendar year reporting cycle. It added nine clients during the third quarter and its headcount stood at 11,341 at the end of the quarter.