Centrum Broking: Hexaware Technologies’ Q2 Logs Strong Revenue And Margin Beat
Students use keyboards during a computer and information technology class at a learning center in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)

Centrum Broking: Hexaware Technologies’ Q2 Logs Strong Revenue And Margin Beat

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Centrum Broking Report

Hexaware Technologies Ltd.’s revenues for Q2 CY20 came at 208 million U.S. dollar down 1.2% QoQ above our estimates (196 million U.S. dollar).

Constant currency revenues declined by 0.9% QoQ. For Q2 CY20, banking and financial sector/Healthcare Insurance/Hitech and Professional services vertical revenues were up 3.5/3.4/2.1% QoQ.

Travel/Manufacturing vertical revenues were down 27/4.4% QoQ. Revenues from top five accounts (37.4% of total revenues) were up 7.7% QoQ and was the key reason for stable performance in the quarter.

Total contract value wins for quarter stood at 46 million U.S. dollar (Net new deals). Business process outsourcing/ application data management services revenues were down 10/5.5% and remained weak on service line front.

Hexaware cited that Q2 CY20 has seen the worst impact of Covid -19 led weakness. However, it expects Q3/Q4 CY20 to be stable quarters sequentially with flat to modest positive volume growth.

Lack of acceleration in H2 CY20 has negated optimism related to strong Q2 CY20 execution.

Click on the attachment to read the full report:

Centrum Hexaware Technologies - Q2 Y20 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.