Hexaware Q2 net zooms 380%, ups guidance

Hexaware Technologies today reported a 380% rise in consolidated net profit at Rs 14.20 crore for the second quarter ended June 30, 2004 when compared with Rs 2.96 crore in the corresponding quarter of the previous fiscal.

Revenues increased 64% to Rs 128.31 crore, according to a release posted on the company website today.

The company added eight clients and hired 243 employees to take the total headcount to 2,879 during the quarter under review.

The guidance for FY04 has been revised upwards to topline of $114 mn (from the earlier estimate of $108 million) and PAT of $12.5 million (from the earlier estimate of $11.2 million), the release added.

Atul Nishar, chairman, said: The market outlook is brightening, and our performance reflects the improving sentiment. The company has recorded its fifth consecutive quarter of double-digit growth in both revenues and profits. Based on growing confidence in the visibility of current business opportunities, we have raised our FY'04 guidance ignificantly."

Rusi Brij, chief executive officer, said: "This quarter's performance strongly bears out our operating leverage story. SG&A costs decreased by 1.5% over the last quarter while PAT margins rose to 11%. Despite a 2.2% impact from salary increases, gross margin declined by just 0.3%."

The company had proactively guarded its shareholder interest by taking forward cover for total dollar receipts into India for the entire year. From July '04 to December '04, the company is covered at an average rate of 45.57 to the dollar. At the current exchange rate, Hexaware expects minimal impact over the next two quarters, the release said.

The company also announced the launch of a wholly-owned business process outsourcing (BPO) subsidiary - Caliber Point Business Solutions.

According to a release issued to the BSE today, Hexaware expects to invest Rs 5 crore in the company.

"Caliber Point currently focuses on the global healthcare industry providing the complete spectrum of claims processing services to the payer segment of the vertical. It has recently won two US customers with multi-year deals exceeding $10 million to manage over 25 million claims per annum. Caliber Point is also exploring opportunities in the HR BPO space," the release added.

Meanwhile, Hexaware board has also cleared a proposal to hike the FII investment limit in the company from the current level of 40% to 74%.

Click here for press release