Hexaware Tech Q3 revenue grows 2.9% qoq, 1.7% yoy to $214.1mn

The company however posted a 11.4% fall in consolidated net profit at Rs162.7cr for September 2020 quarter.

Oct 23, 2020 09:10 IST India Infoline News Service

Global IT Consulting & Digital Solutions provider Hexaware Technologies Ltd., reports numbers for the third quarter ending September 30, 2020. The revenue in the third quarter of the year grew 2.9% qoq, 1.7% yoy to $214.1mn. EBIT margin expands 62 bps to 13.9%. The company said in a regulatory filing on Thursday that it recorded highest ever NN signings with TCV of $154mn.

In Rupees, its revenue grew 1.1% qoq and 7.1% to Rs1585.9cr. EBITDA (Post RSU) grew to Rs277.5cr 2.3% qoq, 16.7% yoy. EBIT increased to Rs220cr, 6.0% qoq, 7.2% yoy. PAT increased 6.7% qoq and declined -11.4% to Rs162.7cr.

The company however posted a 11.4% fall in consolidated net profit at Rs162.7cr for September 2020 quarter. On quarterly basis PAT increased 6.7% compared to second quarter of this year. The company had reported a net profit of Rs 183.7 crore in July-September quarter a year ago.

On October 19, Hexaware received the final approval from stock exchanges (BSE and NSE) interalia confirming that the shares of the company shall cease to be listed from November 9, 2020, it said.

“With a revenue growth of 2.9% qoq and margin expansion of 62 bps qoq, 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.” remarked Atul Nishar, Chairman, Hexaware Technologies Limited.

“We have been relentless in our focus on our post-Covid themes and our results are reflecting that. With a record TCV of NN signings this quarter and our pipeline also the highest it has ever been; we expect to hit a sustained phase of high growth.”

NN wins were highest ever with TCV of $154M. The value of NN wins in Q3 2020 is higher than the NN wins of FY19. Key themes of client spending are transformation to cloud, automation-led sustainable cost optimization and outsourcing. We saw very strong traction with Hexaware’s AMAZETM platform that provides a highly automated mechanism for customers to migrate applications, databases and data warehouses to cloud.

In Q32020, APAC had 15.7% growth, followed by Europe at 7.9% qoq growth. Among the verticals, T&T with 11.7%, H&I with 6% and M&C with 5.5% led the qoq growth. In service lines, BPS grew 17.6% qoq.

The company has hedges worth $214.12 Mn at an average exchange rate of Rs77.87, €5.10 Mn at an average exchange rate of Rs90.47 and £13.24 Mn at an average exchange rate of Rs100.62 maturing over the course of the next eight quarters (from October 2020 to September 2022).

Related Story

Open Free Demat Account (Rs699)