Latest news with #R.Srikrishna
Time of India
25-07-2025
- Business
- Time of India
Hexaware Technologies Q2 Results: Profit jumps 38% YoY to Rs 380 crore but misses estimates
Carlyle-backed Hexaware Technologies reported a 38% on-year rise in June quarter net profit in rupee terms at Rs 380 crore. Profit rose 16% sequentially. Profit trailed expectations, largely due to a more than 20% increase in other expenses such as acquisition-related cost, and impairment of customer contract associated with an earlier acquisition. Hexaware issued a muted revenue guidance for the year ahead. The company follows a January to December financial year. Unlike its mid-tier peers, Hexaware's Q2 revenue was relatively subdued at Rs 3,260 crore, rising 11.1% on-year and 1.6% sequentially in constant currency terms, lagging Street estimates. In constant currency terms, revenue stood at $382.1 million, growing 1.3% sequentially and 7.5% from a year ago. During the quarter, revenue growth was impacted by decline in manufacturing and consumer segments, and flat growth in financial services. Live Events 'Our growth expectations for the year are a little bit lower now than it was in the beginning of Q2,' R. Srikrishna, CEO, Hexaware told ET. 'With lots of new promises of higher tariffs against multiple countries…that's on the negative side. On the positive side, some trade deals have been announced with some smaller countries and there could be a slew of them in the next few weeks,' he added. Shares of Hexaware fell sharply on the earnings announcement. They closed 10.7% lower at Rs 738.25 apiece, underperforming a 0.88% decline in the benchmark BSE Sensex. The Hexaware management said there is softness and cyclicality in the macro environment, and that all large consolidation deals are continuing. 'Small and mid-sized deals are progressing well. However, decision making is slowed. Consequently, lowered expectations for the rest of the year,' the company said. Geographically, Europe witnessed growth both on-year and sequentially, but Asia Pacific witnessed a decline from a year ago, and marginal growth from the March quarter. 'There will be one or two quarters which will have blips (in Asia Pacific) but long-term, in general, it will be positive,' said Srikrishna. 'In India, we made an acquisition to serve GCC (global capability centre) customers here. In the Middle East, we continue to have a strong pipeline and expect to convert in Q3 and grow revenues in Q4.' This month, Hexaware acquired Bengaluru-based SMC Squared for $120 million (about Rs 1,038 crore) in an all-cash deal, which is expected to add revenue growth in the coming two quarters. While adjusted margin improved to 18.1%, up from 17.1% in the March quarter, its full-year margin guidance stood at 17.1–17.4%. The company expects banking to continue to deliver better sequential growth despite a one-off degrowth in Q1 which will impact financial services for the full year. 'On manufacturing, customers are waiting for clarity on costs. Once that happens, it takes a few weeks to translate that into what it means for them,' Srikrishna said.
Business Standard
25-07-2025
- Business
- Business Standard
Hexaware Delivers Solid Q2CY25 Revenue of USD 382.1 Mn, Up 8.6% YoY
PRNewswire Mumbai (Maharashtra) [India], July 25: Hexaware Technologies (NSE: HEXT), a leading global provider of IT solutions and services, today announced financial results for the second quarter of calendar year 2025 ended June 30, 2025. Revenue: * Q2CY25: USD 382.1 Mn | INR 32,607 Mn - USD: +2.8% QoQ and +8.6% YoY | INR: +1.6% QoQ and +11.1% YoY - Constant Currency: +1.3% QoQ and +7.5% YoY Profitability: * Reported EBITDA (1): - Q2CY25: 17.2% | +53 bps QoQ & +156 bps YoY in % terms - +6.1% QoQ & +19.4% YoY in absolute terms * Basic EPS: - Q2CY25: INR 6.25 | +16.2% QoQ & +37.7% YoY Key Client Metrics: * Hexaware Ranked #1 in Service Delivery in the 2025 Whitelane Research IT Sourcing Study for UK & Ireland * Scaled 1 more customer to USD 50 Mn+ category taking the total count to 4 on Q2'25 LTM basis Key People Metrics: * Closing Headcount: 32,410, LTM net headcount addition of 540 * Voluntary Attrition for IT(2): 11.1% * Q2CY25 Utilization Rate for IT(3): 83.7% Other Key Metrics: * DSO (Billed + Unbilled) at 73 in Q2CY25, of which Billed is 40 * LTM Q2CY25 Adjusted Cash Conversion % at 75.5%(4) * Strong Cash and Cash Equivalents position as of 30th June 2025(5) INR 19,248 Mn Leadership Speak "In a difficult global macro environment, we had a solid quarter of execution on revenue, profitability and booking. More importantly, we continue to invest to make a rapid pivot to lead our customers into an AI-powered future," said R. Srikrishna, CEO, Hexaware. "This quarter reflects our continued momentum, marked by healthy YoY revenue growth, solid margin execution, and outstanding cash flow conversion. Our effective tax rate remains among the best in the industry," said Vikash Jain, CFO, Hexaware. Notes: (1) EBITDA in USD terms (2) Voluntary attrition rate for the IT service line is calculated as the total number of IT business professionals and support function professionals who left the company voluntarily during a period, divided by the average number of IT business professionals and support function professionals during the period, computed on a trailing twelve-month basis. (3) Utilization rate for IT is calculated as the total hours IT business professionals spend on customer-billed assignments, divided by the total available base hours. IT business professionals designated as Mavericks (campus hires) are included in the utilization computation after the completion of an initial training period of up to four months. (4) LTM OCF / Reported EBITDA - 79.4% (5) Includes restricted cash balance. Key Wins - Legacy modernization leveraging RapidX™ for a major airline and a large financial institution - App modernization using Amaze® for an international healthcare company based in Australia - Strengthened sales execution of the global wealth business of a large private equity firm, leveraging Salesforce - App modernization using Amaze® for a top 5 global bank - AI-driven services for Enterprise Product Development, Assurance Services, and Cloud Ops for a large US-based fintech firm - Cloud consolidation for a global supply chain management and logistics services company in the US - Multiple AI and ERP deals with a large property management company in the US - Azure migration for a leading insurance provider in Belgium About Hexaware We are a global digital and technology services company with artificial intelligence ('AI') at its core. We leverage technology to deliver innovative solutions that help our customers in their digital transformation journey and subsequent operations. We embed AI into every aspect of our solutions and have created a suite of platforms and tools that allow our customers to adapt, innovate, and optimize in this AI-first era. We serve a diverse range of customers, including 31 Fortune 500 organizations. With a team of 32,410 employees in 28 countries, our presence is spread across major countries, nationalities, languages, time zones, and regulatory zones. For more information, please visit Forward-looking Statements Certain statements in this press release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The Company may, from time to time, make additional written and oral forward statements. We do not undertake to update any forward statements that may be made from time to time by us or on our behalf unless required under the law. Disclaimer Use of Non-GAAP Financials Hexaware has included certain non-GAAP financial measures in this presentation to supplement Hexaware's consolidated financial statements presented on a GAAP basis. These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Hexaware's results as reported under GAAP. The non-GAAP financial information that we provide also may differ from the non-GAAP information provided by other companies. We compensate for the limitations on our use of these non-GAAP financial measures by relying primarily on our GAAP financial statements and using non-GAAP financial measures only supplementally. We have provided reconciliation of non-GAAP earnings to the most directly comparable GAAP earnings, and we encourage investors to review those reconciliations carefully. We believe that providing these non-GAAP financial measures in addition to the related GAAP measures provides investors with greater transparency. We further believe that providing this information better enables investors to understand Hexaware's operating performance and financial condition. Rounding off Certain amounts and percentage figures included in this presentation have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures preceding them. Logo:
Business Standard
29-04-2025
- Business
- Business Standard
Hexaware Tech jumps after Q1 PAT rises 3% QoQ to Rs 327 cr in CY25
Hexaware Technologies rallied 3.06% to Rs 722.90 after the company's consolidated net profit increased 2.6% to Rs 327.2 crore on 1.7% rise in revenue from operations to Rs 3,207.9 crore in Q1 CY25 over Q1 CY24. Profit before tax (PBT) stood at Rs 436.3 crore in Q1 CY25, up 4.63% QoQ and 21.94% YoY. In Q1 CY25, EBITDA stood at Rs 532.2 crore, registering the growth of 3.5% QoQ and 24.3% YoY . During Q1 CY25, constant currency (CC) revenue fell by 0.2% QoQ and jumped 12.7% YoY. In dollar terms, the IT firm reported revenues of $371.5 million, registering a 12.4% year-on-year growth for the Q1 CY25. Total headcount stood at 31,564 in Q1 CY25 as against 32,309 in Q4 CY25 and 30,135 in Q1 CY24. The IT company has informed that the voluntary attrition rate (TTM) came in at 11.2% in Q1 CY25. R. Srikrishna, CEO, said, We continued to execute well on the basics that power our growth - win market share through delivery excellence and invest in creating dierentiated capabilities, talent, and platforms. The strength of our deals wins positions us strongly for a year of solid growth Vikash Jain, CFO, said, We are pleased to report 12.4% YoY revenue growth, demonstrating our resilience. Despite the economic uncertainty, we have not only sustained our growth trajectory but also expanded our margins by 117 basis points YoY and 41 bps QoQ. This achievement underscores our operational excellence and our ability to continue delivering in challenging environment too. Hexaware Technologies is a global digital and technology services company with artificial intelligence (AI) at its core. The company leverage technology to deliver innovative solutions that help its customers in their digital transformation journey and subsequent operations.
Business Standard
29-04-2025
- Business
- Business Standard
Hexaware Delivers Strong Q1CY25 Revenue at $371.5 Mn Up 12.4% YoY
PRNewswire Mumbai (Maharashtra) [India], April 29: Hexaware Technologies (NSE: HEXT), a leading global provider of IT solutions and services, today announced financial results for the first quarter of calendar year 2025 ended March 31, 2025. Revenue: Q1CY25: USD 371.5 Mn | INR 32,079 Mn - USD: (0.2%) QoQ and +12.4% YoY | INR: +1.7% QoQ and +16.7% YoY - Constant Currency: (0.2%) QoQ and +12.7% YoY Profitability: * Reported EBITDA: - Q1CY25: 16.7% | +2.3% QoQ & +20.8% YoY in absolute terms - +41 bps QoQ & +117 bps YoY in % terms * Basic EPS: - Q1CY25: INR 5.38 | +2.5% QoQ & +16.7% YoY Key Client Metrics: - 3 customers >$75Mn (1 customer in the $100 Mn+ category) - NPS Score of 67; 27 points higher than the industry median - Top 5 customers revenue concentration: 25.7% in LTM Q1CY25 Key People Metrics: - Closing Headcount: 31,564, LTM net headcount addition of 1,429 - Voluntary Attrition for IT(1): 11.2% - Q1CY25 Utilization Rate for IT(2): 82.1% Other Key Metrics: - DSO (Billed + Unbilled) at 75 in Q1CY25, of which Billed is 39 - LTM Q1CY25 Adjusted Cash Conversion % at 61.9% - Strong Cash and Cash Equivalents position as of 31st March 2025(3) INR 19,087 Mn Leadership Speak "We continued to execute well on the basics that power our growth - win market share through delivery excellence and invest in creating differentiated capabilities, talent, and platforms. The strength of our deals wins positions us strongly for a year of solid growth." R. Srikrishna, CEO " We are pleased to report 12.4% YoY revenue growth, demonstrating our resilience. Despite the economic uncertainty, we have not only sustained our growth trajectory but also expanded our margins by 117 basis points YoY and 41 bps QoQ. This achievement underscores our operational excellence and our ability to continue delivering in challenging environment too." Vikash Jain, CFO Key Wins - Modernizing the Grants Management System for an international financial institution providing financial and technical assistance to developing countries in education - Finance and HR platform transformation for large financial institution based out of Europe - Application modernization and transformation journey across multiple business lines for large global bank - Developing a new settlement platform to manage transactions more effectively for large travel player providing data analytics and settlement services - Infrastructure, application & data separation consulting and implementation program and migration of applications / workloads from global data center to cloud for a leading American global multinational law firm - Program to eliminate legacy applications to achieve simplification and reduce legacy debt using a low code platform for US based health and technology company - Building Gen AI based platforms and apps for a large legal advisory firm - Broad IT services for one of the largest pet insurance company Notes: (1) Voluntary attrition rate for the IT service line is calculated as the total number of IT business professionals and support function professionals who left the company voluntarily during a period, divided by the average number of IT business professionals and support function professionals during the period, computed on a trailing twelve-month basis. (2) Utilization rate for IT is calculated as the total hours IT business professionals spend on customer-billed assignments, divided by the total available base hours. IT business professionals designated as Mavericks (campus hires) are included in the utilization computation after the completion of an initial training period of up to four months. (3) Includes restricted cash balance About Hexaware We are a global digital and technology services company with artificial intelligence ("AI") at its core. We leverage technology to deliver innovative solutions that help our customers in their digital transformation journey and subsequent operations. We embed AI into every aspect of our solutions and have created a suite of platforms and tools that allow our customers to adapt, innovate, and optimize in this AI-first era. We serve a diverse range of customers, including 31 Fortune 500 organizations. With a team of 31,564 employees in 28 countries, our presence is spread across major countries, nationalities, languages, time zones, and regulatory zones. For more information, please visit Forward-looking Statements Certain statements in this press release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The Company may, from time to time, make additional written and oral forward statements. We do not undertake to update any forward statements that may be made from time to time by us or on our behalf unless required under the law. Disclaimer Use of Non-GAAP Financials Hexaware has included certain non-GAAP financial measures in this presentation to supplement Hexaware's consolidated financial statements presented on a GAAP basis. These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Hexaware's results as reported under GAAP. The non-GAAP financial information that we provide also may differ from the non-GAAP information provided by other companies. We compensate for the limitations on our use of these non-GAAP financial measures by relying primarily on our GAAP financial statements and using non-GAAP financial measures only supplementally. We have provided reconciliation of non-GAAP earnings to the most directly comparable GAAP earnings, and we encourage investors to review those reconciliations carefully. We believe that providing these non-GAAP financial measures in addition to the related GAAP measures provides investors with greater transparency. We further believe that providing this information better enables investors to understand Hexaware's operating performance and financial condition. Rounding off Certain amounts and percentage figures included in this presentation have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures preceding them. Logo:
Business Upturn
28-04-2025
- Business
- Business Upturn
Hexaware Delivers Strong Q1CY25 Revenue at $371.5 Mn Up 12.4% YoY
Q1CY25 EBITDA Expansion of 117 bps YoY Q1CY25 EPS at INR 5.38 Increase of 16.7% YoY LONDON , April 28, 2025 /PRNewswire/ — Hexaware Technologies (NSE: HEXT), a leading global provider of IT solutions and services, today announced financial results for the first quarter of calendar year 2025 ended March 31, 2025 . Financial Summary and Highlights USD Mn INR Mn Q1CY25 QoQ (%) YoY (%) Q1CY25 QoQ (%) YoY (%) Revenue 371.5 (0.2 %) 12.4 % 32,079 1.7 % 16.7 % EBITDA 62.1 2.3 % 20.8 % 5,322 3.5 % 24.3 % PAT 38.3 0.8 % 14.0 % 3,271 2.0 % 17.2 % Constant Currency Growth Q1CY25 QoQ % YoY % Revenue (0.2 %) 12.7 % Revenue: Q1CY25: USD 371.5 Mn | INR 32,079 Mn – USD: (0.2%) QoQ and +12.4% YoY | INR: +1.7% QoQ and +16.7% YoY – Constant Currency: (0.2%) QoQ and +12.7% YoY Profitability: Reported EBITDA: – Q1CY25 : 16.7% | +2.3% QoQ & +20.8% YoY in absolute terms – +41 bps QoQ & +117 bps YoY in % terms : 16.7% | +2.3% QoQ & +20.8% YoY in absolute terms Basic EPS: – Q1CY25: INR 5.38 | +2.5% QoQ & +16.7% YoY Key Client Metrics: 3 customers > $75Mn (1 customer in the $100 Mn+ category) (1 customer in the $100 Mn+ category) NPS Score of 67; 27 points higher than the industry median Top 5 customers revenue concentration: 25.7% in LTM Q1CY25 Key People Metrics: Closing Headcount: 31,564, LTM net headcount addition of 1,429 Voluntary Attrition for IT (1) : 11.2% : 11.2% Q1CY25 Utilization Rate for IT(2): 82.1% Other Key Metrics: DSO (Billed + Unbilled) at 75 in Q1CY25, of which Billed is 39 LTM Q1CY25 Adjusted Cash Conversion % at 61.9% Strong Cash and Cash Equivalents position as of 31st March 2025 (3) INR 19,087 Mn Leadership Speak 'We continued to execute well on the basics that power our growth – win market share through delivery excellence and invest in creating differentiated capabilities, talent, and platforms. The strength of our deals wins positions us strongly for a year of solid growth.'R. Srikrishna, CEO 'We are pleased to report 12.4% YoY revenue growth, demonstrating our resilience. Despite the economic uncertainty, we have not only sustained our growth trajectory but also expanded our margins by 117 basis points YoY and 41 bps QoQ. This achievement underscores our operational excellence and our ability to continue delivering in challenging environment too.' Vikash Jain , CFO Key Wins Modernizing the Grants Management System for an international financial institution providing financial and technical assistance to developing countries in education Finance and HR platform transformation for large financial institution based out of Europe Application modernization and transformation journey across multiple business lines for large global bank Developing a new settlement platform to manage transactions more effectively for large travel player providing data analytics and settlement services Infrastructure, application & data separation consulting and implementation program and migration of applications / workloads from global data center to cloud for a leading American global multinational law firm Program to eliminate legacy applications to achieve simplification and reduce legacy debt using a low code platform for US based health and technology company Building Gen AI based platforms and apps for a large legal advisory firm Broad IT services for one of the largest pet insurance company Notes: (1) Voluntary attrition rate for the IT service line is calculated as the total number of IT business professionals and support function professionals who left the company voluntarily during a period, divided by the average number of IT business professionals and support function professionals during the period, computed on a trailing twelve-month basis. (2) Utilization rate for IT is calculated as the total hours IT business professionals spend on customer-billed assignments, divided by the total available base hours. IT business professionals designated as Mavericks (campus hires) are included in the utilization computation after the completion of an initial training period of up to four months. (3) Includes restricted cash balance About Hexaware We are a global digital and technology services company with artificial intelligence ('AI') at its core. We leverage technology to deliver innovative solutions that help our customers in their digital transformation journey and subsequent operations. We embed AI into every aspect of our solutions and have created a suite of platforms and tools that allow our customers to adapt, innovate, and optimize in this AI-first era. We serve a diverse range of customers, including 31 Fortune 500 organizations. With a team of 31,564 employees in 28 countries, our presence is spread across major countries, nationalities, languages, time zones, and regulatory zones. For more information, please visit Forward-looking Statements Certain statements in this press release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The Company may, from time to time, make additional written and oral forward statements. We do not undertake to update any forward statements that may be made from time to time by us or on our behalf unless required under the law. Disclaimer Use of Non-GAAP Financials Hexaware has included certain non-GAAP financial measures in this presentation to supplement Hexaware's consolidated financial statements presented on a GAAP basis. These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Hexaware's results as reported under GAAP. The non-GAAP financial information that we provide also may differ from the non-GAAP information provided by other companies. We compensate for the limitations on our use of these non-GAAP financial measures by relying primarily on our GAAP financial statements and using non-GAAP financial measures only supplementally. We have provided reconciliation of non-GAAP earnings to the most directly comparable GAAP earnings, and we encourage investors to review those reconciliations carefully. We believe that providing these non-GAAP financial measures in addition to the related GAAP measures provides investors with greater transparency. We further believe that providing this information better enables investors to understand Hexaware's operating performance and financial condition. Rounding off Certain amounts and percentage figures included in this presentation have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures preceding them. Logo: View original content: Disclaimer: The above press release comes to you under an arrangement with PR Newswire. Business Upturn takes no editorial responsibility for the same.
