During the March quarter, Hexaware Technologies' net profit fell to Rs70.3 crore on forex loss and higher tax provisions, even as its revenues increased 16%
Hexaware Technologies Ltd (Hexaware) reported a 11.3% fall in its March quarter net profit on foreign exchange loss and higher tax provisions. Although the company reported 16% higher revenues, the share from its top 10 clients witnessed a decline.
For the quarter to end-March, Hexaware said its consolidated net profit fell 11.3% to Rs70.3 crore from Rs79.3 crore while its total revenues, including sales, grew 16% to Rs589 crore from Rs507 crore, same period last year.
Hexaware reported a first quarter forex loss of Rs13.5 crore compared with a profit of Rs2.3 crore it recorded in March 2013. The IT company also made 29% higher tax provisions of Rs27.2 crore compared with Rs21.1 crore in same period a year ago.
“We have engaged a leading consulting firm to provide advisory on sharpening the ‘Go to Market’ strategy, conducting portfolio assessment of our micro-verticals and to institutionalize sales excellence processes. This initiative will drive the company on its long term growth path,” said PR Chandrasekar, chief executive and vice chairman of Hexaware, in a statement.
During the quarter, Hexaware experienced decline in revenues from some of its top 10 customers. “This was primarily due to some project closures as well as budget re-allocation to other initiatives on the client side. The relationships with all these customers continue to be strong and the company expects a healthy growth from the same set of clients in the coming quarters,” said the company in its regulatory filing.
During the March quarter, Hexaware said it added 11 new clients across all its key focus areas. Of these, one client was added in the Banking and Financial Services (BFS) Domain and two clients each were added in the Healthcare & Insurance (H&I) space and in the Travel and Transportation Vertical and three clients in the Manufacturing Vertical. Of the 11 clients added in Q1 2014, five customers are based in America and six in Asia Pacific (APAC) region.
Hexaware has declared an interim dividend of Rs3 per share.
Hexaware Technologies closed Wednesday 1.21% down at Rs151.30 on the BSE, while the 30-share Sensex ended the day flat at 22,417.
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