Hexaware - 1QCY2013 Result Review - Angel Broking

For 1QCY2013, Hexaware reported broadly in-line set of results with operating margins coming ahead of expectations. The USD revenue came in at US$94mn, up 1.8% qoq volume growth. In INR terms, revenue came in at Rs. 508cr, up 1.1%. The company's EBITDA margin grew by ~240bp (estimate 190bp) qoq to 19.3% on account of considerable increase in utilization by ~550bp qoq to 70.3% and offshore effort shift. PAT came in at Rs. 79cr, up 19.8% qoq.

Management has given 0-2% qoq USD revenue growth for 2QCY2013, which is lower than the expectation of 1–3%. We maintain our accumulate rating on the stock. The stock is currently under review and will be releasing a detailed result update shortly.

Source : Equity Bulls

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