Hexaware Technologies has also given its guidance for the next quarter and it doesn’t look too impressive as they add clients and contracts
Hexaware Technologies reported a slow and disappointing March quarter, with net sales increasing 9% year-on-year to Rs231 crore while net profit dipped 14% y-o-y to Rs70.93 crore, for the quarter ended March 2013. The company has given guidance for the June 2013 quarter, with revenue likely to be in the range of $94 million-$ 96 million (exchange rates taken at 1 pound = 1.55 dollar, 1 euro = 1.30 dollar and 1 dollar = Rs54.38); a quarter-on-quarter sequential revenue growth in dollar terms of 0%-2%, which isn’t that impressive. The global slowdown is apparent and it is affecting the company, even as the average bill rate per hour for the March 2013 quarter remained stable at $73.64 for onsite services and to $23.37 for offshore locations.
During the reporting quarter, the company added 11 new clients across all its key focus areas. Of these, one client each was added in the Banking and Financial Services (BFS) domain and in the Travel & Transportation vertical and two clients were added in the Healthcare & Insurance (H&I) space. From a horizontal service line perspective, six clients were won in Enterprise Solutions space, one client in Quality Assurance & Testing Services (QATS) and twoclients in Business Process Outsourcing (BPO) space.
During the quarter, Hexaware has signed a large deal with revenue estimated at $30 million, with an existing Fortune 500 client, headquartered in the United States.
Through this contract, Hexaware will have an estimated $5 million worth incremental business over the course of the deal.
The company has forward contracts worth $240 million at an average rate of Rs53.6 and hedges worth 14 million euros at an average exchange rate of Rs71.2 maturing over the course of the next eight quarters (from April 2013 till April 2015).
At the end of March 2013, Hexaware’s global headcount stood at 8,670. For the IT business, technical personnel comprised 91.7% of the total work force. Attrition for Q1 2013 reduced to 9.9% as compared to 11% for March 2012.
“With a strong operating performance, we are enhancing the depth and spread of the client facing teams globally. We are further enriching our capabilities in emerging technologies such as Cloud-based ERP to augment existing competencies in Enterprise Solutions & Business Analytics. With an increased focus on the account management of the Top 50 clients, these initiatives would position us favorably to add value to our clients through multiple service lines”, stated PR Chandrasekar, CEO and vice-chairman, Hexaware Technologies.
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