Hexaware Technologies tumbled 10.96% to Rs 152.80 at 14:16 IST on BSE after consolidated net profit fell 31.89% to Rs 70.30 crore on 5.02% decline in income from operations to Rs 588.87 crore in Q1 March 2014 over Q4 December 2013.
The Q1 result was announced during trading hours today, 29 April 2014.
Meanwhile, the S&P BSE Sensex was down 50.77 points or 0.22% at 22,580.84.
On BSE, so far 9.65 lakh shares were traded in the counter as against average daily volume of 2.58 lakh shares in the past two weeks.
The stock hit a high of Rs 172.95 and a low of Rs 151.60 so far during the day.
Hexaware Technologies (Hexaware)'s consolidated EBITDA margin declined 330 basis points QoQ to 19.2% in Q1 March 2014.
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The company's cash & cash equivalents stood at Rs 443 crore as of 31 March 2014.
Hexaware added 11 new clients in Q1 March 2014. The company currently has 235 active clients.
P R Chandrasekar, CEO and Vice Chairman, Hexaware Technologies stated, "Though this quarter has been soft, we expect a healthy growth in revenue in Q2 2014 on the back of the visibility from our existing customers and our deal pipeline. To enable the company's future growth prospects, Hexaware has invested by adding 167 freshers offshore during the quarter. In addition, the company has further strengthened its field sales force by a gross addition of 14 personnel for sales and marketing activities".
Keeping with the growth focus, P R Chandrasekar added "We have engaged a leading onsulting firm to provide advisory on sharpening the 'Go to Market' strategy, conducting portfolio assessment of our micro-verticals and to institutionalize sales excellence processes. This initiative will drive the company on its long term growth path".
During the quarter, Hexaware said it experienced decline in revenue from some of its Top 10 customers. This was primarily due to some project closures as well as budget re-allocation to other initiatives on the client side, the company said. However, the relationships with all these customers continue to be strong and the company expects a healthy growth from the same set of clients in the coming quarters, Hexaware said in a statement. The company expects to register healthy revenue growth QoQ and an improvement in operating margin in Q2 June 2014, Hexaware said in a statement.
Hexaware Technologies' board of directors at its meeting held today, 29 April 2014, declared payment of interim dividend of Rs 3 per share for the year ending 31 December 2014.
Hexaware is a leading global provider of IT & BPO and consulting services.
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