homeearnings News

Hexaware Q1 net profit up 26.3%, suspends annual guidance amid COVID 19 pandemic

Hexaware Q1 net profit up 26.3%, suspends annual guidance amid COVID-19 pandemic

Hexaware Q1 net profit up 26.3%, suspends annual guidance amid COVID-19 pandemic
Profile image

By CNBC-TV18 Apr 29, 2020 4:36:30 PM IST (Published)

Hexaware Technologies revenue jumped 22 percent to Rs 1,541.7 crore in the quarter under review as compared with Rs 1,264 crore in the year-ago period.

Hexaware Technologies on Wednesday posted a 26.3 percent rise in net profit at Rs 175 crore in the March 2020 quarter. The IT firm, however, said it was suspending its guidance for FY20 amid uncertainty due to COVID-19 pandemic. The company had reported a net profit of Rs 138.4 crore in the January-March 2019 period, Hexaware Technologies said in a regulatory filing.

Recommended Articles

View All

Its revenue jumped 22 percent to Rs 1,541.7 crore in the quarter under review as compared with Rs 1,264 crore in the year-ago period. The company follows January-December as its fiscal year.
"COVID-19 has led to significant uncertainty in the current environment. In view of this, we suspend the guidance that was provided earlier for FY'20," it said.
In February, the company had said it expects its FY2020 revenue to grow 15-17 percent.
IT firms like Wipro and Infosys have also suspended their practice of offering revenue growth forecast, while Cognizant had retracted its annual outlook for 2020 amid uncertainties due to COVID-19 outbreak that has disrupted businesses globally.
Hexaware's earnings per share (EPS) was at Rs 5.86 at the end of March quarter, up 26.1 percent year-on-year.
"Our focus on operational efficiencies helped us deliver an EPS expansion in the current quarter," Hexaware Technologies Chief Financial Officer Vikash Kumar Jain said.
He added that future quarters would be a "period of uncertainties and opportunities".
"We believe our strategic themes and strong balance sheet position us well to partner with our stakeholders to come out of this crisis stronger," he said.
Hexaware said the company was early in transitioning to work from home (WFH) mode, much before the government-mandated lockdown.
Currently, 99 percent percent of its IT work and 80 percent of BPS in terms of revenue is WFH, it added.
"Once the government-mandated lockdown is lifted, we will be resuming services in our offices in a staggered and segmented approach starting with those delivering critical services for which onsite presence is required," Hexaware said.
Atul Nishar, chairman of Hexaware Technologies, expressed confidence that the company's strategic focus and robust execution capabilities will drive growth going forward.
In dollar terms, Hexaware's net profit rose by 18.3 percent to $23.4 million, while revenue grew 17 percent to$210.6 million in the said quarter on a year-on-year basis.
The company said it won deals from new customers (NN) in the first quarter with TCV (total contract value) of USD 69 million, and this was one of the best quarters of NN signings.
Its headcount stood at 19,998 people in the said quarter, with attrition at 15.1 percent.
The company said Meera Shankar has ceased to be an independent director with effect from April 10, 2020 pursuant to completion of the second term as an independent director.
The board of directors has approved the appointment of Milind Shripad Sarwate and Madhu Khatri as additional directors in the capacity of non-executive independent directors of the company with effect from April 25, 2020 for a period of three years, subject to the approval of shareholders.
-PTI contributed to this story
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng