Hexaware Technologies share price slips 5% post Q4 result; Nomura remains neutral
Earnings before interest and tax (EBIT) down at Rs 201.4 crore, while margin was at 13.2 percent, QoQ.
February 12, 2020 / 09:58 AM IST
Hexaware Technologies share price fell 5 percent in early trade on February 12 after the company reported a poor set of numbers for the quarter ended December 2019.
The company’s Q4 net profit was down 8.7 percent at Rs 167.7 crore against Rs 183.7 crore in the quarter ended September 2019.
Rupee revenue of the company rose 3.2 percent QoQ at Rs 1,528.8 crore versus Rs 1,481.3 crore and dollar revenue was up 1.4 percent QoQ at USD 214 million versus USD 211 million.
Earnings before interest and tax (EBIT) was down to Rs 201.4 crore, while margin fell at 13.2 percent QoQ.
Morgan Stanley | Rating: Equal-weight | Target: Rs 370 per share
The guidance for CY20 is already reflected in expectations and we see limited catalysts in the near term.
We cut CY20-21 EPS estimates up to 3 percent.
Nomura | Rating: Neutral | Target: Raised to Rs 380 from Rs 355 per share
We raise FY20/21 EPS estimates by 2-4 percent on higher revenue due to better guidance.
The risks related to stake sale from Barings are low.
We expect the company to deliver dollar revenue growth of 10.8 percent over FY19-22 and expect a margin of 15.9%, 15.4% over FY20/21.
At 09:34 hrs, Hexaware Technologies was quoting at Rs 362.50, down Rs 12.75, or 3.40 percent on the BSE.