Hexaware Q2 net slips 12 pc

MUMBAI, INDIA: IT-BPO services provider Hexaware Technologies has posted a 12.3 per cent dip in its second quarter net profit to Rs 26.12 crore from Rs 29.78 crore posted for the year-ago period.

The company, however, posted its revenue at Rs 261.64 crore for the second quarter ended June 30, 2007, an increase of 26.5 per cent from Rs 206.87 crore posted for the corresponding quarter the previous year.

The rupee appreciation affected the Mumbai-based company also, and it decided “not to provide further guidance” till the rupee reaches a relatively stable level.

According to Atul Nishar, the executive chairman, “This has been a challenging quarter solely on account of the highest ever rupee appreciation in a single quarter – our revenues would have been higher by Rs 21.5 crores and PAT by Rs 8.4 crores otherwise. This ongoing volatility in the currency markets had placed a premium on delivering faster efficiency gains and tighter execution. The sharp improvement in utilization levels and significant enhancement in employee productivity bear a testimony to our ability to rise to this challenge.”

The Board of Directors declared an interim dividend on Preference Shares Series “A” for the period ended June 30, 2007 @ 2.95 per cent per annum and @ 40 per cent on equity shares of the company respectively. The record date is fixed on Friday, August 3, 2007 for determining the shareholders entitled for this interim dividend.

Hexaware added 15 new clients during the reporting quarter. Of these, seven were from North America, two were in Europe and three in the APAC. The newly launched JV Risk Tech brought in two clients and one client was added through Caliber Point, the wholly owned BPO subsidiary.

Hexaware closed the quarter with a total headcount of 5726, a net reduction of 25 over Q1 2007. The technical manpower comprised 89.7% of the total work force in comparison to 89.6 per cent over the last quarter. Attrition rate stood at 16.8 per cent on an annualized basis. By the end of Q3 2007 Hexaware expects to at least add 650 more gross employees, including new graduate engineer trainees.