Mid-size IT solutions company Hexaware Technologies has reported an 11.3 per cent dip in net profit for the first quarter ended March 31, 2014, on account forex losses.
Hexaware, which is controlled by Baring Private Equity Asia, has recorded a net profit of ₹70.3 crore against ₹79.3 crore. (The company follows a January-to-December accounting calendar.)
Revenue for the quarter was up by 16 per cent to ₹589 crore from ₹507.7 crore.
Hexaware reported a forex loss of ₹13.5 crore against a gain of ₹2.3 crore in the same quarter a year ago.
“Though this quarter has been soft, we expect a healthy growth in revenue in the second quarter of 2014, on the back of the visibility from our existing customers and our deal pipeline,” said PR Chandrasekar, CEO and Vice-Chairman, Hexaware.
In a press statement, the company said that it experiences decline in revenue from some of its largest customers. “This was primarily due to some project closures as well as budget re-allocation to other initiatives on the client side. However, the relationships with all these customers continue to be strong, and the company expects a healthy growth from the same set of clients in the coming quarters,” the statement said.
The company’s board of directors has declared a first interim dividend of ₹3 per share.
The Hexaware scrip was down by 10.75 per cent to close at ₹153.15 on the BSE today.