Hexaware Technologies' consolidated net profit up 54 per cent in July-Sept quarter

Hexaware Technologies Ltd today reported a 54 per cent rise in its consolidated net profit for the quarter ended 30 September 2011. The company also revised revenue guidance for December quarter and financial year 2012 on back of continuing growth momentum.

The Mumbai-based software services firm, which follows a calendar year, posted a third-quarter consolidated net profit of Rs64.70 crore, compared with Rs42.04 crore posted during the same period of previous financial year.
Quarterly total revenue from "operations" was Rs366 crore, 30 per cent higher than the Rs281.74 crore of the year-ago quarter, while "other income" was Rs13.37 crore, compared with the Rs9.31 crore in the preceding-year quarter.

The firm also provided a fourth quarter revenue guidance of $82 million to $82.5 million, which is an increase of about 4-4.7 per cent on a quarter-on-quarter basis.

The company's share price, which was down by about 2.6 per cent before the earnings release, pared losses after the results.

"This was the sixth consecutive quarter of impressive revenue growth. Since the growth momentum is continuing we have revised the annual revenue guidance to 32 per cent growth at $306 million. Although we have seen margin expansion for five successive quarters, Hexaware still has several levers left to improve margins over the medium term. While we are mindful of the macro economic developments, based on feedback from our clients, we remain optimistic about our growth prospects," Hexaware Technologies chairman Atul Nishar said.

In July, Hexaware had raised its annual revenue outlook to a minimum of $302 million.

For the July-Sept, Hexaware, which added 12 new clients, saw its EBITDA margins rise 340 basis points on a quarter-on-quarter basis to 18.7 per cent, despite onsite wage hikes.
Hexaware is in the process of increasing its seating capacity by 300 in its global delivery centre at Mumbai. Further, it is expanding its presence in Pune to newer premises with a planned seating capacity of 700 personnel.