Hexaware Technologies Ltd., a global provider of IT and business-process outsourcing services, reported a lower net profit for the fourth-quarter, both on consolidated and stand-alone basis, despite increase in incomes.
Consolidated Results
The Navi Mumbai-based company's fourth-quarter consolidated net profit fell by 25 percent to Rs.66.17 crore or Rs.2.20 per share from the Rs.88.25 crore or Rs.2.95 per share posted in the fourth-quarter last year.
Its quarterly income from operations was in line with the revised quarterly revenue guidance at Rs.502.28 crore, higher by 16 percent than the Rs.431.88 crore of the year-ago quarter. Other income for the quarter was Rs.10.29 crore, compared with the Rs.13.67 crore in the preceding-year quarter.
During the quarter, income from "Travel and Transportation" segment amounted to Rs.95.92 crore, while that of "Banking, Financial Services" was Rs.163.99 crore. Income for the quarter from "Manufacturing and Services" totaled Rs.95.23 crore and that of "Others" touched Rs.67.19 crore. Income from 'Insurance and Healthcare' segment stood at Rs.79.95 crore.
During the quarter, the company added 11 new clients.
Average billing rate per hour for the quarter increased sequentially to $74.27 for on-site services and to $23.16 for offshore locations, it said.
Attrition for the quarter reduced to 8.7 percent, compared to 13.9 percent for Q4FY11.
For the fiscal year, its consolidated net profit increased by 23 percent to Rs.327.65 crore from the Rs.267.03 crore in 2011. Total income, including other income, totaled Rs.1,992.01 crore, compared with Rs.1,498.72 crore last year, reflecting a 33 percent growth.
Stand-alone Results
Hexaware's stand-alone net profit for the fourth-quarter was Rs.56.60 crore or Re.1.88 per share, down by 28 percent from the Rs.78.37 crore or Rs.2.62 per share in the corresponding quarter last year. Total income, including other income, rose by three percent to Rs.229.58 crore from the Rs.222.01 crore in Q4FY11.
For the fiscal year, its stand-alone net profit was Rs.285.60 crore, compared with Rs.231.98 crore in 2011, an increase of 23 percent. Total income, including other income, amounted Rs.958.33 crore, up by 32 percent from the Rs.723.52 crore last year.
Global headcount of the group at the end of the quarter was 9,069.
The company's Board recommended a final dividend of 60 percent or Re.1.20 per equity share of Rs.2 each for the fiscal year 2012, and it will be paid on May 4.
The company expects its first-quarter revenue to be in the range of $94-$95 million, based on exchange rates of 1 GBP = $1.58 and 1 EUR = $1.34 and 1$ = Rs.53.52, a Q-o-Q sequential growth of 1.7 percent to 2.8 percent.
Chairman Atul Nishar said, "In line with the dividend policy announced in 2011, Hexaware board has decided to continue with the liberal dividend policy and the company intends to distribute around 50 percent of the net profits as dividend. Given the financial strength as well as the evident growth prospects, dividend will continue to be declared every quarter."
CEO and Vice Chairman P.R. Chandrasekar commented, "With the investments made to strengthen our competencies and expansion of our field force strength in accordance to our Strategic Plan, we remain confident of delivering double digit revenue growth for the year 2013. Further, with multiple cost levers at hand, we believe operating margin expansion will commence immediately in Q1FY13 and continue going forward. For Q1FY13, on a constant currency basis, we expect operating margin to expand 150-200 basis points sequentially."
At the BSE, Hexaware Tech shares are currently trading at Rs.83.85, up Rs.2.35 or 2.88 percent on a volume of around 15,73,000 shares.
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