Apr 27, 2012, 11.20 AM | Source: Moneycontrol.com

Hexaware Q1 net up 64% YoY, sees 3.4-4.5% Q2 $ rev growth

Software services provider Hexaware Technologies topped street expectations with a 64% year-on-year jump in first quarter net profit at Rs 88.4 crore.

Moneycontrol Bureau

Software services provider Hexaware Technologies topped street expectations with a 64% year-on-year jump in first quarter net profit at Rs 88.4 crore.

Revenue for the Jan-March quarter was up 37.6% from a year ago to Rs 438.3 crore.

On a sequential basis net profit was flat, while revenue rose 1.5%.

Analysts on average had expected Hexaware to report 9.1% quarter-on-quarter decline in net profit at Rs 80 crore, on revenue of Rs 440 crore, according to a CNBC-TV18 poll.

Hexaware shares rose post the strong earnings announcement, and at 10:30 hrs were up 1.5% at Rs 129.35 on NSE.

The company has guided for revenue of USD 91-92 million, up 3.4-4.5% sequentially. In the first quarter, its US dollar revenue rose 4.7% from fourth quarter at USD 88 million.

"The foundation to achieve holistic growth was further strengthened this quarter through robust revenue growth, favorable shift towards offshore business, higher fresher intake, and stable pricing and technical utilization regime. Building on this strong momentum and deals in active pursuit, we are well poised to deliver annual revenue growth of minimum 20% year-on-year at the current profitability margin levels on a constant currency basis," PR Chandrasekar, CEO and vice chairman said.

In the first quarter, Hexaware's gross margins rose 400 bps year-on-year and 60 bps sequentially to 41.3%. Its EBITDA (earnings before interest, taxes, depreciation and amortization) margins rose 809 bps from a year ago, but down 60 bps sequentially to 22.4%.

Its average bill rate per hour in the quarter rose 2.6% year-on-year and 1.2% quarter-on-quarter to USD 73.9 for on-site services, while off-shore bill rates remained firm at USD 22.9, Hexaware said.

The company added 12 new clients in the Jan-March quarter and had 201 active clients at the end of March.

It net added 307 employees in the first quarter and has a global headcount of 8,624 employees. Hexaware said it hired 225 fresh graduate engineers in Jan-March and is on track with hiring plans for calendar 2012. Its attrition was down to 11% in Q1.

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