Hexaware Q1 earnings fail to add up, shares sink 9%

Stocks of IT major Hexaware Technologies today slumped 9 percent on profit taking after the company's March quarter earnings disappointed investors.

The scrip of the mid-sized firm tanked 9.05 percent to settle at Rs 281.05 on BSE. During the day, it dropped 10.55 percent to Rs 276.40.

On NSE, it dived 8.89 percent to end at Rs 281.55. Led by the sharp fall in the stock, the company's market value dropped Rs 840.92 crore to Rs 8,463.08 crore. Market participants said an overall sluggish investor sentiment in a weak stock market prompted profit booking in the stock.

Hexaware Technologies yesterday reported a net profit growth of 19 percent at Rs 83.35 crore for the first quarter ended March 31, 2015.

The firm had posted a consolidated net profit of Rs 70.30 crore in the year-ago period. Consolidated revenue rose 21 percent to Rs 713.43 crore in the January-March quarter from Rs 588.9 crore in the same quarter of the previous fiscal, the company had said in a regulatory filing.

On quarter-on-quarter basis, its net profit fell 5 percent from Rs 87.25 crore in October-December of 2014 while revenue grew marginally to Rs 713 crore from Rs 711.8 crore in that period.

In the broader market, the BSE benchmark Sensex closed the day with a loss of 214.62 points at 27,011.31.