Hexaware Shares Fall Over 6% After Q3 Results, But CEO Is Bullish On Revenue Growth In 2020
Hexaware CEO R Srikrishna is confident of achieving the revenue growth guidance with a possibility of even surpassing it.
Hexaware Technologies Ltd. expects its revenue to grow 15-17 percent in 2020 as it shakes off a sluggish December quarter in its banking, financial services and insurance segment.
“This year the furloughs were larger than normal and we have a single client in BFSI which started having a downward impact in the third quarter,” R Srikrishna, chief executive officer of the information technology firm, told BloombergQuint in an interview. “We guided for that to continue through the fourth quarter and that happened.”
“Good news for us is going forward, it is completely in our rearview mirror,” Srikrishna said, adding that he is confident of achieving the guidance growth with a possibility to even surpass it.
Still, there are risks, he warned. “Coronavirus is emerging as a rapid risk to everything, including our business.” While the impact may not necessarily be felt this quarter, at least one of the clients—an airline—has been affected by this disruption, he said.
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Hexaware Q3 Results: Key Highlights (QoQ)
- Dollar revenue up 1.8 percent at $214.3 million
- Revenue up 3.2 percent at Rs 1,528.8 crore
- Net profit down 8.5 percent at Rs 168 crore
- Ebitda flat at Rs 204.4 crore
- Margin at 13.4 percent versus 13.9 percent
- Forex gain of Rs 197.6 crore in base quarter
- Ebitda guidance for calendar year 2020 at 15-16 percent
On Wednesday, shares of the company fell the most since Oct. 24, 2019, declining as much as 6.38 percent intraday to Rs 351.25 apiece.