Mid-cap IT services firm Hexaware reported net profit of Rs 88.4 crore for the first quarter ended March 31, 2012, up 64% from Rs 53.8 crore in the corresponding quarter last year.
The company surpassed its Q1 revenue guidance and reported topline growth of 28.8% at Rs 438.3 crore, from Rs 318.5 crore in the same quarter last year.
Sequentially the firms net profit was flat from Rs 88.2 crore and revenue were up by 1.5% from Rs 431.9 crore. During the quarter the company had a forex gain of Rs 26 crore compared to a loss of Rs 53 crore.
The company's stock went up 2% during intra-day as it guided for a revenue to be in the range of $91 million - $92 million. Representing a growth of about 3.5 - 4.5%. The company also said that it will be able to meet its full year guidance of 20% growth.
"Over the last eight quarters, we have been consistent maintained our topline growth. We have also managed to improve our EBIDTA margins. In terms of pipeline, we are pursuing four to five large deals. Of this, two are in the advance stages and we expect to close these in the next one to two months," said Sreenivas V, Chief Strategy Officer. For the company, large deals mean contract value of $25 million and above. For the third quarter, the firms EBIDTA was down 1.2%.
During the quarter Europe grew by 8% and US grew by 4% sequentially. In terms of vertical, growth was driven by travel and transportation that grew 12% and healthcare and insurance was up 11%. In case of Hexaware too banking and capital market was flat.
More From This Section
Srinivas also agreed that the company has been able to garner contracts are large deals are being broken down. "Clearly the $1 billion deals have gone down. And as deals have become smaller we have been able to be part of these deals. This has increased our ability to participate more," he added.
During the quarter, Hexaware added 12 clients, taking the total number of active clients to be 201. Of the 12 clients added in Q1 2012, 5 customers are based in Americas, 4 in Europe and 3 in Asia Pacific (APAC) region.