Hexaware’s net profit for the third quarter ended September 30, 2009 jumped over threefold to Rs 41.3 crore from Rs 11.5 crore in the corresponding quarter last year.
The company managed to met its revenue guidance at Rs 263.2 crore for the quarter, though it dipped 10.7 per cent from Rs 294.6 crore in the same quarter last year.
The company’s stock zoomed up 16.2 per cent during intra-day trading and closed 11.29 per cent up at Rs 79.85 from the previous close of 71.75.
On sequential basis, net profit was up 4.7 per cent from Rs 39.5 crore — and revenue was up 1.6 per cent from Rs 259 crore.
For the next quarter, the company has issued the same guidance as given for Q3 2009, that is, Q4 ’09 revenue is likely to be in the range of $52.5 million - $54.5 million, assuming exchange rates of 1 GBP = $1.65 and 1 EUR = $1.45 .
“In view of our current utilisation levels combined with the deal closures and expected business recovery in 2010, we have inducted 116 engineering graduates in the organisation in Q3 2009. We have further augmented our sales force and have added five horizontal practitioners, continuing our strategy of judicious investments while focusing on managing our overall levels of efficiency,” said P R Chandrasekar, CEO and Vice Chairman, Hexaware Technologies.
During this quarter the company also absorbed its employee, over 200, who were put on virtual bench to cut cost in wake of the global slowdown.
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The quarter witnessed an addition of nine new clients. In terms of verticals, four clients were added in Banking Financial Services and Insurance (BFSI) and five clients in Emerging Verticals. The total number of active clients stood at 159. The number of clients registering over $1million in revenues stood at 47, with 38 clients in the $1 - $5 million category, six clients are in the $5 - $10 million range and three clients billed over $10 million each – on a trailing 12 months basis.
“This has been a good quarter for Hexaware, where we have improved all our margins. During the last quarter, we signed five noteworthy deals, three deals worth $15 million each and two deals worth in excess of $5 million each in our focused verticals. It is clear that the sentiment in the market has improved,” said Atul Nishar, Executive Chairman, Hexaware Technologies.
The company had a forex loss of Rs 19.8 crore (as compared to Rs 11.6 crore in the last quarter). Its cash and cash equivalent increased to Rs 402 crore ($83.5 million).