Hexaware signs three-year pact with US client - Angel Broking

Hexaware has signed a contract with one of its US-based existing clients; the new contract is for a period of three years and the estimated revenue from the deal is about US$30mn. As a part of this engagement, Hexaware will provide services that cater to multiple business users across different technology platforms. The service lines include software development and application services management through Microsoft, Java and legacy applications, enterprise solutions through PeopleSoft and SAP, business intelligence and analytics, quality assurance and testing services, remote infrastructure management services and business process outsourcing. Hexaware has been associated with the client for seven years and through this contract the company will have an estimated US$5mn incremental business over the course of the deal. The revenue from this contract will begin to accrue with immediate effect as it also secures extension for the revenue stream from existing service lines for a three year period, the company said.

We maintain our Buy rating on the stock with a target price of Rs. 105.

Source : Equity Bulls

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