Mid-sized IT services firm Hexaware Technologies on Thursday said it expects the gross margins and EBITDA (earnings before interest, tax, depreciation and amortisation) to rebound sharply from the Q2 onwards.
Hexaware follows the January-December fiscal.
"Gross margin has impacted as December and March quarter are seasonally weak," said R Srikrishna, CEO, Hexaware Technologies.
The company on Wednesday reported a 3.1 percent rise in consolidated net profit to Rs 138.4 crore in the March 2019 quarter.
Its revenue rose 20.5 percent to Rs 1,264 crore as compared with Rs 1,049 crore in the corresponding period a year ago as per the Indian Accounting Standards.
During Q1 there are many clients who are nervous as it is the start of the year which impacts revenue, said Srikrishna, adding that the revenue from new clients added in the year acts as a buffer against unforeseen negativity.