Hexaware expects strong Q4 as deal flow picks up pace

Hexaware Technologies expects the fourth quarter of the year to be good for the deal pipeline since a lot of contracts that were postponed earlier in the year are now being brought forward, the chief executive of the mid-cap IT services company said.

"The demand environment is stabilising, and deal flows have improved...we expect that momentum to improve," R Srikrishna told ET.

The manufacturing vertical posted growth year-on-year and sequentially, displaying signs of a recovery in the sector as clients warm up to US tariffs, he said. "While the tariffs are still there, people know where they are applied and can plan their supply chain accordingly."


The company won two major deals in the past quarter, and the pipeline is expected to improve in the fourth quarter, he said. The company follows a January to December financial year.

The Carlyle-backed company on Thursday said it acquired US-based identity and access management solutions firm CyberSolve for $66 million (₹ 585.5 crore) in cash to expand into those areas of business. "Their client base and our client base are almost mutually exclusive, which means there's an opportunity for us to penetrate each other's client base," Siddharth Dhar, Hexaware's president and global head of digital IT operations & AI, told ET.

The acquisition is expected to be completed by November 13 and is expected to add to revenue next year.

Hexaware reported a 23.4% year-on-year jump in net profit to ₹369 crore for the third quarter ended September 30.