Hexaware Q1 profit up by 4.3%, suspends revenue guidance

Hexaware has reported a rise in quarterly profits but suspended its annual revenue guidance.

The company said in a statement that Covid-19 has led to significant uncertainty in the current environment.

"Once the Government mandated lockdown is lifted, we will be resuming services in our offices in a staggered and segmented approach starting with those delivering critical services for which onsite presence is required," the company said. Profits for the March-ended quarter, which is Q1 for Hexaware, came in at ₹175 crore, a 4.3 per cent sequential rise when compared to ₹167.8 crore posted in the December 2019-ended quarter. On a year-on-year basis, profits were up 26.3 per cent.

Revenues for the March-ended quarter were ₹1,541 crore, a 0.8 per cent increase sequentially when compared to ₹1,528 crore. On a year-on-year basis, a 20.5 per cent increase.

“As digital transformation becomes imperative in the current environment, I am confident that our strategic focus and robust execution capabilities will drive our growth going forward,” said Atul Nishar, Chairman, Hexaware Technologies. In the March-ended quarter, the company had ₹441 crore of cash on its books.

In Q1 2020, Europe showed 65.4 per cent YoY growth. At the end of Q1, Hexaware had close to 20,000 employees and attrition reduced to 15.1 per cent. The Board of Directors have approved the appointment of Milind Shripad Sarwate and Madhu Khatri as Additional Directors as Non-Executive Independent Directors, subject to shareholders approval. Hexaware shares closed at ₹295, up 3 per cent when compared to previous day's close.

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