Views on Hexaware 1QCY2014 results - Angel Broking

Views of Ms. Ankita Somani (Research Analyst - IT, Angel Broking) on Hexaware 1QCY2014 results:

"For 1QCY2014, Hexaware reported extremely disappointing set of results. The USD revenue came in at US$95.8mn, down 4.3% qoq. In INR terms, revenue came in at Rs. 589cr, down 5% on sequential basis. Revenue growth during the quarter was hit because of ~6%/9% qoq decline in revenues from its top 5/10 clients, respectively. Management indicated that the company experienced decline in revenues from some of its top 10 customers primarily due to some project closures as well as budget re-allocation to other initiatives on the client side. The company's EBITDA margin declined by ~330bp qoq to 19.2%. PAT came in at Rs. 70cr, down 32% on a qoq basis, impacted by weak operational performance as well as forex loss of Rs. 13.5cr as against loss of Rs. 10.8cr in 4QCY2013. We believe that from hereon, the company will require fresh investments in service offerings as well as in sales capabilities to build a pipeline for sustained growth, which is expected to impact company's cash flows in the near term. We continue to remain Neutral n the stock."

Shares of HEXAWARE TECHNOLOGIES LTD. was last trading in BSE at Rs.151.25 as compared to the previous close of Rs. 151.3. The total number of shares traded during the day was 1665212 in over 3857 trades.

The stock hit an intraday high of Rs. 154.5 and intraday low of 149. The net turnover during the day was Rs. 252718395.

Source : Equity Bulls

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