Software services exporter Hexaware reports 18 pc growth in sales in 2012

MUMBAI: Software Services exporter Hexaware reported sales growth of 18 per cent in 2012 despite project delays and weak demand for outsourcing services during the year. The Mumbai-based company said it has so far seen no cut in technology budgets of clients in the year ahead.

After announcing earnings for its financial year ended December, PR Chandrasekhar, vice-chairman and chief executive officer, told ET that there is healthy demand for outsourced technology services in the US, even as parts of Europe continue to be under pressure due to macro-economic concerns.

"Some parts of Europe are under pressure, but opportunities don't look too bad. I don't expect a major increase in IT spending, but there are no signs of budget cuts as of now," Chandrasekhar said.

On Monday, Hexaware reported a 23 per cent rise in profits for its fiscal year 2012 that ended on December 31. In the October-December quarter, however, profits fell to Rs 66 crore from Rs 84 crore in the previous quarter. The company, which provides outsourcing services to clients mainly in the banking, financial services and healthcare sector, said its revenues, reported in US dollars, grew 18 per cent during the year.

India's $70-billion IT services export sector had slowed sharply last year as economic slowdown in Europe compounded by weak demand for IT outsourcing in the US, two markets which together contribute over nearly 80 per cent of revenues for the sector. Industry body Nasscom expects IT/BPO services exports to grow by at least 11 per cent in the year to March 31.

Angel Broking analyst Ankita Somani said Hexaware's December quarter earnings was in line with analyst expectations, but that its margin guidance for the current quarter is positive. "In spite of slowdown, Hexaware has done well and reported consistent client wins in every quarter. Their double digit growth guidance for the coming year is highly positive," Somani said.

Chandrasekhar said he expects Hexaware's first quarter revenue growth to be in the range of 1.7 per cent-2.8 per cent on a quarterly basis, with a 1.5-2 percentage point expansion in operating profit margins.

On Monday, Hexaware shares jumped as much as 9 per cent in early trade on the Bombay Stock Exchange but closed at Rs 84.05 a piece, up 3.13 per cent.