The Hindu Business Line : Hexaware net surges; launches BPO arm

MOMENTUM in client ramp-ups and increased repeat business have resulted in a 379.8 per cent surge in net profits at Rs 14.2 crore for Hexaware Technologies for the second quarter-ended June 30 as compared to Rs 2.9 crore recorded during the corresponding period last year.

"The quality of clients as also the client ramp-ups we have seen gives us the confidence that this is a sustainable growth we are looking at. Every third customer we have today is a large customer (read multi-million dollar order)," Mr Rusi Brij, CEO, Hexaware told Business Line.

During the quarter, the company added eight new clients taking the total number of active clients to 97, with repeat business increasing to 79 per cent as against 56 per cent last year.

Consolidated revenue from software services amounted to Rs 128.3 crore (Rs 78.1 crore) for the second quarter of 2004, a 64.2 per cent increase. Hexaware has taken a forward cover for the dollar receipts into India for the entire year and from July 2004 to December 2004, the company is covered at an average rate of Rs 45.57 to the dollar. The EPS for the quarter was Rs.24.88 on an annualised basis.

Future outlook

"The company has recorded its fifth consecutive quarter of double-digit growth in both revenues and profits. Based on growing confidence in the visibility of current business opportunities, we have also raised our FY'04 guidance significantly," Mr Atul Nishar, Chairman, Hexaware Technologies, told the media here on Tuesday.

Hexaware announced the launch of Caliber Point, its BPO subsidiary to focus on the healthcare and HR BPO domains. The company plans to invest Rs 5 crore on the BPO outfit and increase headcount to 700 people by December 2004 , according to Mr Ashok Bildikar, President, Caliber Point.

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