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Hexaware Technologies Q2 net profit up marginally at Rs 152.4 crore

Its revenue increased 19.9 percent to Rs 1,569.1 crore in the quarter under review as compared with Rs 1,308.3 crore in the year-ago period.

July 29, 2020 / 04:17 PM IST
 
 
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IT firm Hexaware Technologies on Tuesday posted a marginal rise in net profit to Rs 152.4 crore for the June 2020 quarter. The company had reported a net profit of Rs 151.3 crore in the April-June 2019 period, Hexaware Technologies said in a regulatory filing.

Its revenue increased 19.9 percent to Rs 1,569.1 crore in the quarter under review as compared with Rs 1,308.3 crore in the year-ago period.

The company follows January-December as its fiscal year.

Stating that the second quarter was the "bottom", Hexaware said it expected "flat to small volume growth in Q3 and Q4, with normal cyclical effects overlaid in Q4".

As one of its top three accounts - that has been a headwind to its growth over the past three quarters - returned to growth in the second quarter, Hexaware said it expects "continued growth in this account for the foreseeable future".

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"We expect to go back to delivering industry leading growth as the headwind from one of our top three accounts recedes fully. Our impeccable execution through COVID-19 has helped us improve relationships and grow market share with our customers," Hexaware Technologies CEO and Executive Director R Srikrishna said.

Much of Hexaware's improved margins are backed by sustainable initiatives, he added.

"Our continued focus enabled us to execute well this quarter across multiple fronts - revenue, EBITDA, collections, cash flows and long-term sustainable transformation initiatives," Hexaware Technologies CFO Vikash Kumar Jain said.

While revenue decline was limited, Hexaware executed very strong on margins and cash flow front, he added.

Hexaware's earnings per share (EPS) was at Rs 5.10 at the end of June quarter.

In dollar terms, Hexaware's net profit declined by 7.2 percent to $20.2 million, while revenue grew 10.4 percent to $208.1 million in the said quarter on a year-on-year basis.

The company said it won deals from new customers (NN) in the second quarter with TCV (total contract value) of $46 million.

"Material, 'V' shaped improvement in activity levels with customers from late May. Market-share growth in many existing customers and material improvement in pipeline," Hexaware said.

Its headcount stood at 18,825 people in the said quarter, with attrition at 14 percent.

The board of directors declared the second interim dividend of Rs 1.5 per share. Earlier in the year, the board had declared the first interim dividend of Rs 3.
PTI
first published: Jul 28, 2020 07:16 pm

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