Hexaware Tech shares dropped over 6 percent in Friday's trading session amid a soft December quarter growth after the company announced financial results for the fourth quarter of calendar year 2024 ended December 31, 2024.
The sharp fall was witnessed after the recently-listed company said the Macros have trended marginally negative in the last few weeks. The company expects CY25 performance to be resilient to modest macro changes.
Shares of Hexaware Technologies Ltd declined 6.75 percent to an intraday low of Rs 763.95 per share on the NSE.
The company reported a 66.33 percent jump in net profit to Rs 320.7 crore in the December quarter of 2024 calendar year. The company had posted a net profit of Rs 192.8 crore in the year-ago period and Rs 299.7 crore a quarter earlier.
The revenue was reported at Rs 3,154 crore in the fourth quarter of the previous year, a jump of 20.58 percent from Rs 2,616 crore in the year ago period.
"Two of our top three customers are undergoing consolidation, and we have secured these deals," it said. The company anticipates some ramp-up in the second quarter, with the majority expected in the third quarter.
Constant currency (CC) revenue growth stood at 0.2 percent sequentially and 18.8 percent year-on-year (YoY). Hexaware Technologies closed the 2024 calendar year with a constant currency revenue growth of 13.5 percent. The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) margin expanded by 30 basis points (bps) to 16.3 percent from the previous quarter.
"CY24 performance underlines the resilience of our business model. We clocked strong revenue growth of 13.7% YoY for CY24 while expanding margins at the same time and delivering 18.1% operating margin growth YoY. Our razor-sharp focus on cash flow helped yield OCF to Adjusted EBITDA of 74%+," said Vikash Jain, CFO, Hexaware.
This was the first quarterly earnings report released by the company after it listed on the bourses on February 19. The shares of Hexaware Technologies Ltd were listed at Rs 745.5 per share on the NSE, a premium of 5.3 percent over its issue price. On the BSE, the shares of the company were listed at Rs 731 apiece, a premium of 3.25 percent. Post listing of the shares, the total market valuation of the company stood at Rs 44,422.48 crore.
The Rs 8,750-crore Hexaware Technologies IPO, which was open for subscription between February 12-14, garnered a 2.66 times subscription. The issue had a price band of Rs 674 - 708 per share. The company had raised Rs 2,598 crore from anchor investors.
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