Motilal Oswal: Hexaware Technologies - Surprising Q2 Performance, But Defensive Outlook

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..Motilal Oswal Report.Despite the sharp decline in travel and transportation vertical (-27% QoQ), overall revenue remained largely stable for Hexaware Technologies Ltd.This was driven by robust performance in banking financial services and insurance and Healthcare verticals (approximately3.5% QoQ, each).Sequentially, headcount declined 6% YoY, driving strong Improvement in utilizations (approximately 330 basis point) and gross margin (approximately 220 basis point).Key positives were the commentary around (a) healthy deal wins in H1 CY20, (b) pipeline improvement, (c) wallet share gain in existing clients, and (d) growth in Freddie Mac account. However, ‘flat to small’ volume growth guidance for H2 CY20 does not echo similar optimism.The same goes for expectation of Ebitda margin stability (versus H1 CY20), implying sequential drop (versus Q2 CY20)..Click on the attachment to read the full report:.DISCLAIMERThis 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.

Motilal Oswal: Hexaware Technologies - Surprising Q2 Performance, But Defensive Outlook

Motilal Oswal: Hexaware Technologies - Surprising Q2 Performance, But Defensive Outlook

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