Cloud, and client cost optimisation projects that are automation-led are driving growth amid the pandemic for
Hexaware Technologies, said R Srikrishna, CEO, Hexaware.
The company registered $214 million in revenue, up 1.7 percent year-on-year, for Q3. Hexaware follows the calendar year for its fiscal. The company
announced its Q3 results on October 22.
This is the last result of the company as a publicly listed firm. Hexaware's shares will be delisted from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) effective November 9.
Its promoter Baring Asia PE had announced its intent to delist in early June.
Delisting, it said, will help in cost savings and allow the management to dedicate more time to focus on business. Baring PE has majority stakes in two other IT services firms --
Coforge, the erstwhile NIIT Technologies, and US-based Virtusa.
Srikrishna, in a recent conversation, reiterated that delisting will have no impact on its operations or employees.
Growth and recovery
When the pandemic hit, the company repurposed its verticals to cater to the changing client needs. This includes automation, cloud, customer experience and touchless technology.
They continue to drive growth for the company as the market is shifting to the new normal, according to Srikrishna.
For one, technology spends are returning and clients are spending it on migrating to cloud. Two, companies which had paused projects due to the pandemic are now looking at ways to optimise costs through automation.
“We are winning a lot of these,” he added. These have helped the company win one of its highest ever total contract – worth $154 million -- in Q3. The deals are a mixture of small and large ones.
He further added that once the clients move to cloud, demand in its other focus areas, such as touchless technology, will see traction.
Cautious outlook
While the company is seeing recovery across majority of the verticals, Srikrishna said the company is cautious about the outlook.
In Q3, barring travel and transportation, its other verticals, banking and financial services, healthcare, and manufacturing and consumer grew on a year-on-year basis as well.
According to Srikrishna, the growth from travel and transportation, one of the worst hit by the pandemic, is unlikely to see a recovery in the next 1.5 years.
However, the second wave and the US fiscal stimulus are worrying. While recovery is on track, the lack of US fiscal stimulus will have a broad-based impact on verticals in the short term. Recovery in banking and consumer sectors may slow down without the stimulus.
“However, there is little chance that the stimulus won’t happen,” Srikrishna hoped.
Hiring scenario
On the people front, the company has given a one-time bonus for employees in Q3. Hiring has improved with the net addition of 582 recruits, compared to the previous quarter. Total headcount now stands at 19,407.
Last quarter, the headcount declined by 1,173 in the business process services. The company has also started on-boarding freshers, which it deferred due to the pandemic. However, he did not share the details.
