The Hindu Business Line : Hexaware Tech net rises 36%

Advertisement

Mumbai Feb. 15 Hexaware Technologies said its net profit for the quarter ended December 31, 2006 rose by 36.36 per cent to Rs 33.75 crore from Rs 24.75 crore a year earlier. Net revenues for the quarter stood at Rs 240.21 crore against Rs 174 crore recorded in the same year-ago period.

For the fiscal ended December 31, 2006, the net profit rose by 35.78 per cent, at Rs 124.23 crore (Rs 91.49 crore).

Total revenue for the period grew by 24.98 per cent to Rs 848.21 crore from Rs 678.66 crore.

Hexaware is starting calendar year 2007 with an order book exceeding $170 million (Rs 765 crore) for the year, said Mr Atul Nishar, Executive Chairman. "Our recent performance, a solid order book and a strong business environment gives me the confidence that we can double our revenues and profits within the next 8-10 quarters," said Mr Nishar.

Acquisitions

Speaking to Business Line on the sidelines of the press meet, Mr Nishar said that the company would complete at least one acquisition in Europe or in North America by the end of the calendar year. It is looking at acquiring companies with a price tag of $30-$40 million (Rs 135- Rs 180 crore) in the ERP space (excluding Peoplesoft), Business Intelligence, BFSI and the transportation vertical. "Our acquisitions will be funded by $ 70 million (Rs 315 crore) of cash and cash equivalent that we have in our reserves, and partly through internal accruals," said Mr Nishar.

The company missed its Q4 earnings guidance of Rs 35.2 crore owing to a 3.8 per cent appreciation of the rupee against the dollar. Mr Rusi Brij, Vice Chairman and CEO, said: "The rupee's rapid appreciation in Q4 reduced our operating margin by 1.3 per cent."

For Q1 fiscal year 2007, the company expects revenue from operations to be in the range of $ 59-$ 60 million (Rs 265.5 crore- Rs 270 crore) , said a news release from the company.

The company's average billing rate for the quarter has remained stable at $ 66.1 (Rs 297.45 crore) for onsite locations, and at $ 22.92 (Rs 103.14 crore) for work done offshore.

More Stories on : Financial Performance | Software | Mergers & Acquisitions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page