Hexaware - Q2CY13 Result Review - Angel Broking

For 2QCY2013, Hexaware reported broadly in-line set of results on the revenue front but exceeded expectations on the operating margin as well as on the bottomline front. The USD revenue came in at US$94.8mn, up 0.8% qoq, aided by volume growth of 1.5% qoq. In INR terms, revenue came in at Rs. 537cr, up 5.7%. The company's EBITDA margin grew by ~440bp qoq to 23.7% on account of operational efficiency. PAT stood tall at Rs. 98cr, up 23.5% qoq, aided by gains due to strong operation performance.

Management has given 3QCY2013 revenue guidance of US$98.1-100mn implying a qoq growth of 3.5-5.5%, which is higher than our expectation. Strong margin performance during the quarter coupled with better than expected guidance for next quarter would result in upgrade of our estimates of CY2013.

Overall a strong set of results and we continue to remain positive on the stock with target price currently under review.

Source : Equity Bulls

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