Hexaware Q4 revenue up 40 p.c.

MUMBAI: IT & BPO services provider Hexaware Technologies Ltd has recorded a total revenue of Rs 240.21 crore for the fourth quarter, showing an increase of 45.3 per cent from the same period in the previous fiscal.

During the same time, the company has shown a growth of over 88 per cent in its profit after tax at Rs 33.7 crore from Rs 17.8 crore during the fourth quarter of fiscal 2005-‘06.

Sequentially, revenues grew by 6.8 per cent while profit after tax (PAT) has shown a dip by 2.7 percent.

On yearly basis, the company has grown by 39.9 per cent in its revenues from Rs 606.52 crore in 2005-`06 to Rs 848.21 crore in 2006-07.

Net profits grew almost 100 per cent from Rs 62.40 crore to Rs 124.2 crore from 2005-`06.

On November 28, 2006, Hexaware closed the acquisition of FocusFrame Inc., a US-based testing services firm, ahead of schedule.

“A notable achievement for the year has been the success in replacing the revenue and profitability lost on account of the transfer of ISC in November’05. We are starting CY’07 with an order book exceeding $170 million for the year,” said Atul Nishar, executive chairman, Hexaware Technologies Ltd. He added, “The integration of operations and business with FocusFrame is going exceedingly well, and in some areas is ahead of schedule. We are on track to realize over $ 100 mn per annum in testing revenues within the next 3 years. Our recent performance, a solid order book, and a strong business environment give me the confidence that we can double our revenues and profits within the next 8-10 quarters.”

Commenting on the Q4’06 performance, Rusi Brij, vice chairman and CEO said, “The rupee’s rapid appreciation in Q4 was a negative surprise that reduced operating margins by 1.3 per cent during Q4. But for external variables, we would have exceeded our profit guidance. We also continue to make investments in strengthening our future business competitiveness. The financial impact of these initiatives has been factored in our Q1 07 guidance.”

The company expects its revenue to be in the range of $59-60 million for the first quarter of 2007-`08 and profit after tax is expected to be between $7.8-8 million.

The Board recommended a final dividend of 40 per cent (Rs 0.80 per share) subject to the approval of shareholders at the ensuing Annual General Meeting. This brings the total dividend for the year to 80 per cent or Rs 1.60 per share.

The company currently has forward cover of $41.00 million at an average rate of Rs 45.68

The average billing rate per hour for the quarter has remained stable at $66.10 for onsite locations, and at $22.92 for work done offshore.

The global headcount at the end of the quarter increased to 5,829. Technical personnel comprised 89.6 per cent of the total work force. Attrition rose marginally to 15 per cent on an annualized basis

Hexaware added another 50,000 sq. ft facility, adjacent to the existing offices at Mahape. This new facility will have a seating capacity of 550 professionals.

The company strengthened its operations in Pune. While 25 acres of land was acquired in Hinjewadi Phase III SEZ to build a state-of-the-art Campus, another 30,000 sq. ft in Pune to seat 300 professionals was also added.

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