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Mid-size IT services firm Hexaware Technologies today reported a 22.3 per cent rise in its December quarter net profit at ₹121.5 crore against ₹99.4 crore in the same quarter last year. It follows the January-December fiscal year.
Its revenues increased 14.8 per cent to ₹940.9 crore in the reported quarter from ₹819.5 crore in the corresponding quarter last fiscal.
H-1B visa issue
On the issue of possible visa clampdown in the US, the company said it believes any changes that happen in future will be prospective and not retrospective.
“Further, it is likely to have an impact from late 2018 only, given that April 2017 is the cycle for new H-1B visa applications. In 2016, Hexaware saw a reduced dependence on H-1B and is committed to continuous reduction of dependence on usage of visas,” it said.
Hexaware continues to report robust growth this quarter with revenue up 13.2 per cent year-on-year in constant currency and EBITDA up 24.8 per cent y-o-y, its Chairman Atul Nishar said. “The combination of fearless automation and digital innovation represents the company’s biggest asset, strengthening the customer’s business and differentiating us in a competitive marketplace,” he added.
The company saw a strong total contract value (TCV) booking of $55 million from new customers.
In dollar terms, net profit for the said quarter was up 22.1 per cent y-o-y to $17.9 million, while revenue grew 12 per cent to $138.9 million.
“We continue to deliver solid broad-based growth on the back of our ‘Shrink IT, grow digital’ strategy. We now exit 2016 with a run-rate that puts us in pole position for a double digit growth in 2017. We also saw accelerated booking from new customers that will further aid our growth,” its CEO and Executive Director R Srikrishna said.
In the fourth quarter of 2016, Americas led the geographic growth with 14.3 per cent y-o-y increase, while healthcare and insurance saw 6.2 per cent growth. Banking and Financial Services (BFS) showed an 18.2 per cent growth for 2016.
The company’s headcount stood at 12,115 at the end of the quarter, up by 296 people from the September 2016 quarter. Attrition at the end of December 2016 was at 16.1 per cent.
Cash and cash equivalents at the end of December quarter were at ₹448 crore.
Interim dividend
The board of directors has declared a second interim dividend of ₹1 per share (50 per cent) on equity shares of ₹2 each.
For 2017, the company expects its revenue to grow at 10-12 per cent, it said in an investor presentation. For the full year, net profit was up 6.1 per cent to ₹417.1 crore, while revenue was up 13.2 per cent to ₹3,123.5 crore.
In dollar terms, net profit was up 2.3 per cent to $62 million, while revenue was up 8.3 per cent to $525.5 million.
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