Hexaware Q3 net up 4.7 p.c YoY

MUMBAI, INDIA: Hexaware Technologies, a provider of IT and BPO services, announced on Wednesday its financial results for the third quarter which ended on September 30, 2009.

The company reported a net profit of Rs 41.3 crore in the quarter from Rs 11.5 crore in the corresponding quarter of the previous year. It has posted 4.7 per cent sequential growth in net profit, said a press release.

Meanwhile, the company revenue dipped 10. 7 per cent to Rs 263.2 crore for the quarter from Rs 294.6 crore in the same quarter last year.

The company’s stock zoomed up 16.2 per cent during intra-day trading and closed 11.29 per cent up at Rs 79.85 from the previous close of 71.75.

On sequential basis, net profit was up 4.7 per cent from Rs 39.5 crore and revenue was up 1.6 per cent from Rs 259 crore.

It posted EBITDA of 23.7 per cent that was up from 21.5 per cent in the previous quarter.

“In view of our current utilisation levels combined with the deal closures and expected business recovery in 2010, we have inducted 116 engineering graduates in the organization in Q3 2009, ” said P R Chandrasekar, CEO and vice chairman, Hexaware Technologies.

He added that they have further augmented their sales force and have added five horizontal practitioners, continuing their strategy of judicious investments while focusing on managing their overall levels of efficiency.

During this quarter the company also absorbed its employees, over 200, who were put on virtual bench to cut cost in wake of the global slowdown.

The quarter witnessed an addition of nine new clients. In terms of verticals, four clients were added in Banking Financial Services and Insurance (BFSI) and five clients in Emerging Verticals. The total number of active clients stood at 159, the release added.