Hexaware Q2 net profit up 48% YoY at Rs 89 cr
Software services provider Hexaware Technologies' second quarter consolidated net profit rose better-than-expected 48% year-on-year (0.8% sequentially) to Rs 89 crore, helped by continued demand for outsourcing services even as the global macro-economic conditions remain tough.
July 31, 2012 / 13:56 IST
Moneycontrol Bureau
Software services provider Hexaware Technologies' second quarter consolidated net profit rose better-than-expected 48% year-on-year (0.8% sequentially) to Rs 89 crore, helped by continued demand for outsourcing services even as the global macro-economic conditions remain tough.Its consolidated revenue in April-June rose 50% from a year ago (14.1% quarter-on-quarter) to Rs 500.1 crore.In dollar terms, Hexaware's revenue was at USD 91.2 million, up near 4% sequentially, it said on Tuesday.Analysts on average had expected Hexaware to report a net profit of Rs 85.3 crore on revenue of Rs 499 crore (USD 91 million in dollar terms) in Q2, according to a CNBC-TV18 poll.The company's Q2 EBITDA margin rose 764 basis points year-on-year and 53 bps compared with Jan-March quarter to 22.9%.Hexaware now expects its third quarter revenue will be in the USD 92.5-94 million range, a quarter-on-quarter growth of 1.4-3%."The strong performance of 7.2% compounded quarterly growth rate in revenue and 22% in EBITDA over the last 9 quarters substantiates the sustained growth at Hexaware. Over the same period we have also had a healthy client addition and have added 12 new clients in the last quarter. Our number of active clients has increased to 210, of which 50+ belong to Fortune/Global 500 clients," said Chairman Atul Nishar.Of the 12 new clients added, 3 were in the Banking and Financial Services (BFS) domain and 1 in travel and transportation vertical. Six of the 12 customers are in Americas and 3 each in Europe and Asia Pacific.In April-June, Americas contributed to 63.3% of Hexaware's total revenue, 29.2% from Europe and 7.5% from Asia Pacific.The average bill rate per hour in the second quarter was stable at USD 73.50 for onsite services and USD 22.85 for offshore locations, Hexaware said.The company's global headcount increased to 8,733 at the end of June, up 1,314 from a year ago and 109 sequentially and attrition declined to 9.6%, it said.Hexaware said it has forward contracts worth USD 219 million at an average rate of Rs 50.4 and hedges worth Euro 13 million at an average exchange rate of Rs 69.6 maturing over next eight quarters.IT companies have reported mixed results for the April-june quarter. For instance, India's second largest IT company Infosys missed street expectations, discontinued issuing quarterly guidance and cut full year US dollar guidance citing challenges in the global economic environment, but India's top software services exporter TCS reported strong growth.Hexaware shares were down 2.7% at 113.85 on NSE in morning trade. Also Read: Environment tough but our top clients stable, says Hexaware Tech Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
