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Mid-sized IT services company, Hexaware Technologies, today reported 15 per cent decline in its consolidated net profit at Rs 87.3 crore for the quarter ended December 2014, mainly due to currency headwinds.
The firm had posted a net profit of Rs 103.2 crore in the year-ago period, it said in a BSE filing.
Consolidated revenues, however, rose 15 per cent to Rs 711.8 crore in the October-December quarter of 2014 fiscal against Rs 620 crore in the same quarter of 2013 fiscal.
The company follows January-December period as fiscal year.
When asked about the decline in profits, Hexaware CEO R Srikrishna told PTI: “The decline is mainly due to a hedging (of currency) the company had done almost one-and-a-half years back. Also, there is a hit due to employee restructuring related to a large client.”
The company reported an exchange rate difference loss of Rs 14.85 crore and an exceptional item of Rs 6.56 crore.
“This quarter, Hexaware had robust q-o-q revenue growth of 4.1 per cent and 190 basis points increase in EBITDA margin. This is a validation of the company’s strategic direction,” Hexaware Technologies Chairman Atul Nishar said.
The company also declared an interim dividend of Rs 2.50 per share.
“Revenue growth during Q4 2014 was broad-based. Europe led the geographic growth, while healthcare and insurance led growth among verticals. Business intelligence & analytics and remote infrastructure management services led the growth among service lines,” Srikrishna said.
During the fourth quarter, the firm added 10 new clients across all its key focus areas.
Cash and cash equivalents at the end of December 2014 stood at $78.35 million.
The total headcount stood at 10,016 at the end of 2014, up 319 q-o-q and 1,162 y-o-y.
In US dollar terms, net profit fell 16 per cent to $14.05 million in Q4 of 2014 from $16.67 million during the same quarter of 2013.
Revenues rose 14 per cent to $114.54 million from $100.14 million.
For the entire 2014 fiscal, net profit declined by 16 per cent to Rs 320.2 crore from Rs 379 crore in 2013.
Revenues rose 13 per cent to Rs 2,581.7 crore from Rs 2,285.3 crore earlier. The firm added 44 clients during 2014 fiscal.
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