Hexaware (BUY) - Quarterly estimates - ICICISecurities

- Expect Q2CY13 revenues to grow 0.3% QoQ to US$94.3mn (with ~40bps cross currency [CC] impact) as against the guidance of US$94-96mn.

- Expect EBITDA margin to rise 220bps QoQ to 21.5% helped primarily by ~4.5% depreciation in Rupee v/s US$. Constant currency margin expansion is likely to be around 100bps. Hexaware had earlier pushed wage hikes to Q3CY13.

- Forex gains are expected to be to the tune of Rs48mn (Rs23mn forex gain in Q1CY13) primarily due to the translation gains QoQ

- Higher margins and higher forex gains will help PAT to likely grow 15% during Q2CY13.

- Key factors to watch: i) Commentary on large-deal pipeline; ii) Q3CY13 and full year CY13 revenue guidance and iii) margin roadmap.

Source : Equity Bulls

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