NIFTY 50

Will spend about $300 million in next 2-3 years on M&A, says Hexaware CEO

Updated : January 31, 2019 12:12 PM IST

Hexaware Technologies’ Q4 revenue came in-line with estimates while margins missed estimates.

R Srikrishna, CEO of the company, speaking at length on the results, said that the drop in margins was due to furloughs and wage hike.

He further said that furloughs and wage hike impacted margin by 60 basis points. One basis point is a hundredth of a percentage point.

“We will 100 percent improve our Q4 margins. We are absolutely certain that our full year FY19 will be at least at the same as the full year average of FY18," he said.

“The supply side issues that everyone is calling out now - we called out a quarter earlier. We spoke about it in Q3. We said that it will impact our ability to fulfill demand, we said it will impact our revenues, we put a three-pronged strategy to deal with it. So in some ways we called it out a bit earlier and we have been addressing it more systematically a bit earlier,” he said.

Talking about deal wins, he said, “In general this year was a great year. For the first we had new client giving us $100 million deal which happened in Q4. We also had an existing client giving us a deal north of $100 million. Both happened this year and both are solid tailwinds for revenue growth in 2019 and also solidity in client mining across the board is the reason why we feel very bullish that in 2019 we will return to delivering industry leading organic growth.”

When asked our growth, he said, “We have a very active merger and acquisition (M&A) pipeline and strategy. Our goal is to spend $200-300 million in the next 3 years.”
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV