Hexaware plunges on reports of revenue headwind from E&Y

Shares of Hexaware Technologies declined in early trade after reports that the company is facing a revenue headwind from one of its top clients, Ernst & Young (EY).

The Mumbai-based Hexaware, majority owned by Baring Private Equity Asia, counts EY as a platinum account, with an annual IT outsourcing exposure of $80 million, about 15 per cent of overall revenue. But this figure has shrunk sharply following a review by EY of its IT strategy, according to a report by Times of India.

The scrip closed the day at Rs 238.05, down 1.08 per cent after plunging nearly 5 per cent in early trade. Shares of the company opened at Rs 235.70 and touched a high and low of Rs 236.30 and Rs 228, respectively, in trade. Benchmark BSE Sensex was almost flat at 31,103.

On the BSE, 3 lakh shares were traded on the counter so far as against the average daily volumes of 1.60 lakh shares in the past two weeks.

The stock had hit a 52-week high of Rs 267.50 on June 6, 2017 and 52-week low of Rs 178.10 on October 17, 2016.

However, in a BSE filing, the company said, “Hexaware reiterates and reaffirms its guidance given at the beginning of the year on its financial performance.”