Hexaware Technologies shares slide 7% after Q4 earnings, macro concerns

Hexaware Technologies fell as much as 6.9% on Friday to Rs 763.45 on the BSE after the recently listed IT services company posted a muted sequential growth in its fourth-quarter earnings and flagged macroeconomic headwinds.

The company reported a 66.3% year-on-year rise in net profit to Rs 320.7 crore for the December quarter of 2024, compared to Rs 192.8 crore a year earlier. Revenue grew 20.6% year-on-year to Rs 3,154 crore. However, sequential revenue growth in constant currency terms was just 0.2%, raising concerns over near-term demand.

"Two of our top three customers are undergoing consolidation, and we have secured these deals," the company said, adding that revenue ramp-up is expected in the second and third quarters of 2025.


Hexaware Technologies said it expects its performance in 2025 to be “resilient to modest macro changes,” despite noting that economic indicators had trended “marginally negative” in recent weeks.

Hexaware’s EBITDA margin expanded by 30 basis points sequentially to 16.3%, while voluntary attrition for IT roles stood at 10.8%. The company’s headcount grew to 32,309 employees, with a net addition of 4,017 in 2024.

Despite overall revenue growth of 17.7% in the Americas, 3% in Europe, and 6.5% in Asia-Pacific, European revenues declined 9.7% in Q4. The company’s cash balance stood at Rs 1,977 crore as of December 31.

The stock, which debuted on the bourses on February 19, had gained modestly since its listing before Friday’s sharp selloff. The Rs 8,750-crore IPO was subscribed 2.66 times and listed at a slight premium.

The company’s shares have fallen 6.62% in the last one week and the stock closed 2.4% higher on Thursday at Rs 819.90 on the BSE.

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