Axis Direct's research report on Hexaware Technologies
Hexaware’s Q3CY16 revenue was inline but EBIT margin (15.9%; up 190 bps QoQ) surprised positively leading to a beat on the PAT. Margin performance was driven by strong SG&A efficiencies and ramp-up of utilization (up 410 bps at 74.1%).
Management expects volume growth to continue in Q4 but headwinds of holidays and seasonal furloughs (expected to be higher YoY) to impact growth. Deal pipeline is stronger than ever. In the Banking and Financial Services (42% of revenue), Hexaware is looking at multi-year transformational programs in the secondary mortgage market. In capital markets, the management is looking to cross sell its IMS and BPO offerings. Expect new wins to be more offshore centric. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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