The Hindu Business Line : Hexaware net down 41% on forex derivatives loss

Mumbai, April 28 City-based Hexaware Technologies has reported a 40.7 per cent dip in quarterly net profit for March 2008 to Rs 20.86 crore compared with Rs 35.19 crore registered in the corresponding quarter a year ago.

One of the reasons for the fall was the mark-to-market loss of Rs 5.6 crore that the company had reported on account of foreign exchange derivatives transactions.

Revenues for the quarter were flat at Rs 266.95 crore (Rs 264.36 crore).

In November last year, Hexaware had suffered a severe blow due to certain unauthorised forex derivative deals entered on the company’s behalf by a senior treasury official.

The company unwound those transactions in a single quarter, taking a hit of about Rs 103 crore.

For the April-June quarter, the company expects revenues to be in the range of $71 million-$72.5 million, 6-8 per cent higher than quarterly revenues a year ago.

The April-June quarter is going to be tougher than the previous sequential quarter for Indian IT companies, believes Mr Rusi Brij, Vice-Chairman and CEO of Hexaware.

“Though companies still have a healthy pipeline, there is a lot of delay in taking decisions due to the US recession. We expect Q2 to be a challenging quarter,” Mr Brij told Business Line.

(Hexaware follows a January-December financial year)

Europe could also start feeling the impact of the US recession by the end of the year and start slowing down, according to Mr Brij.

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