Hexaware Technologies Ltd - Inline operating performance, retain BUY - Emkay

Reco: BUY
CMP: Rs 114
Target Price: Rs 140

- June'12 qtr op performance inline - Revenues at US$ 91.2 mn (+3.6% QoQ), EBITDA mgns at 22.9%, up 50 bps sequentially. Profit beat driven by lower than expected forex losses

- Op metrics performance mixed. Top 5/10 clients grow lower than co average. Amongst geographies, APAC drives growth (+17.5% QoQ) with US/Europe growing at 2.8/2.2% QoQ

- Sep'12 guidance at 1.4-3% QoQ growth implies a 3-6% QoQ growth for Dec'12 for co to achieve CY12 revenue guidance of ~US$ 370 mn

- Moderate US$ rev est( build in 20.5/16% YoY US$ growth V/s 22/18% earlier) driving a 4/5% cut in CY12/13E EPS to Rs 11.7/13. BUY stays with a revised TP of Rs 140.

Source : Equity Bulls

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