Hexaware Jul-Sep net profit falls 11.4 pc to Rs 162.6 cr

The company had reported a net profit of Rs 183.7 crore in July-September quarter a year ago, Hexaware Technologies said in a regulatory filing. Revenue from operations, however, increased 7 per cent to Rs 1,585.9 crore in the quarter under review as compared with Rs 1,481.3 crore in the year-ago quarter.

IT firm Hexaware Technologies on Thursday posted a 11.4 per cent fall in consolidated net profit at Rs 162.6 crore for September 2020 quarter. The company had reported a net profit of Rs 183.7 crore in July-September quarter a year ago, Hexaware Technologies said in a regulatory filing.

Revenue from operations, however, increased 7 per cent to Rs 1,585.9 crore in the quarter under review as compared with Rs 1,481.3 crore in the year-ago quarter. The company follows January-December as its fiscal year.

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, the 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 (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 per cent quarter-on-quarter and margin expansion of 62 basis points q-o-q (quarter-on-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.

He added that with a record TCV (total contract value) of new customer (NN) signings this quarter (at USD 154 million) and the highest ever pipeline, the company expects to hit a sustained phase of high growth. The value of new customer (NN) wins in the September 2020 quarter is higher than those in FY19, the filing said.

"As the recovery happens globally, and clients leapfrog into digital, some of the first dollars of discretionary spend from clients will be focussed on their technology transformation journey," Hexaware Technologies CEO and Executive Director R Srikrishna said. "The demand environment is very strong, however the macroeconomic dynamics are varied and spending across industries will vary," Srikrishna added.

The recovery cycle for some of the troubled verticals that require footfall, like travel and transportation, could be well into 2022, he added. "On the back of strong performance last quarter, we are proud of how we executed this quarter on all aspects of our business - order wins, revenue and margins. We remain confident of our growth momentum," Vikash Kumar Jain, CFO at Hexaware Technologies, said.

The company's headcount stood at 19,407 at the end of the third quarter, while attrition was at 12.3 per cent..