Hexaware posts 6.6% sequential growth in profit for the September quarter

Our Bureau Mumbai October 23 | Updated on October 23, 2020 Published on October 23, 2020

Revenues up at ₹1,586 crore on new customer signings during the quarter

On the back of good deal wins, Hexaware has reported a 6.6 per cent sequential growth in net profit to ₹162.6 crore for September 2020 quarter. In the June ended quarter, it had posted ₹152.5 crore in net profit. However, on a yearly basis, profits dipped by 11.4 per cent.

Revenues for the September-ended quarter came in at ₹1,585.9 crore, a 1.07 per cent growth sequentially when compared to ₹1,569.1 crore in the June quarter. On a yearly basis, revenues grew 7 per cent when compared to ₹1,481.3 crore posted in the year-ago quarter.

Hexaware had a record TCV (total contract value) of $154 million in new customer signings this quarter and the highest ever pipeline.

Also read: Hexaware shares to bid adieu on October 30

“We are in early days of a sustained phase of high growth,” R Srikrishna, Hexaware Technologies CEO and Executive Director told BusinessLine.

He added that the demand environment is strong, however the macroeconomic dynamics are varied and tech spending across industries will vary. “While the first round of fiscal stimulus helped businesses, another infusion will help businesses,” he said.

In the quarter, Hexaware also expanded its margins by 62 basis points sequentially. Hexaware added 15 clients in the quarter, almost half of which were in the $5-10 million bucket.

“With revenue growth and margin expansion in the quarter, Hexaware has once again delivered robust results. This continues to demonstrate the successful execution of our growth strategy and the increasing relevance of our offerings to our clients,” Hexaware Technologies Chairman Atul Nishar said.

However, Hexaware expects a recovery cycle for some of the troubled verticals that require footfall, like travel and transportation, to take in excess of a year. Travel and transportation contributed 7.9 per cent of its revenues.

During the quarter ended September 30, 2020, HT Global Holdings BV, a subsidiary of HT Global IT Solutions Holdings Ltd, acquired 8,72,86,523 equity shares, representing 29.08 per cent of total share capital of the company, from public shareholders under the voluntary delisting offer, a regulatory filing said.

As a result of this, the aggregate shareholding of the promoter group stands at 91.16 per cent in the company as of September 30, 2020, it added.

On October 19, Hexaware received the final approval from stock exchanges confirming that the shares of the company shall cease to be listed from November 9.

The company’s headcount stood at 19,407 at the end of the third quarter, while attrition was at 12.3 per cent, down 14 per cent when compared to the June-ended quarter.

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Published on October 23, 2020
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