Thursday, 2 November 2017

Hexaware Technologies hits 52-week high as Q3 profit beats estimates

Hexaware Technologies hits 52-week high as Q3 profit beats estimates

Hexaware Technologies hit 52-week high of Rs 305, up 9% on the BSE, after the company reported a better than expected consolidated net profit of Rs 142 crore in September 2017 quarter (Q3CY17). The analysts on an average had expected profit of Rs 122 crore for the quarter.

Revenue for the quarter in line with the analyst estimates of Rs 993 crore against Rs 984 crore in June quarter (Q2CY17). In dollar terms, revenues for the quarter at USD 154 million grew by 0.9% QoQ versus street estimates of 0.5% QoQ growth.

While company has maintained its CY17 revenue guidance of 14%-15%, management has guided for achieving growth towards the upper end of the range. The company revised upward Ebitda (earnings before interest, tax, depreciation and amortization) growth guidance to 16.5%-17.5%. The previous guidance was that Ebitda growth will be in line with revenue growth i.e. 14-15%.

“Given the beat on 3QCY17 we increase our CY17 USD revenue estimate to 15% (14.5% earlier). We maintain our CY18 estimate of 10% YoY growth despite client specific headwind of 2.5-3.0% as we remain confident of the company offsetting the same through the increased traction seen in new deal wins and enhanced client mining capabilities. Company has demonstrated good success in winning new business from new clients and also adding new clients in top-20,” Analysts at Antique Stock Broking said in result review with maintain ‘hold’ rating on the stock.

In past one year, the stock has outperformed the market by gaining 50% as compared to 22% rise in the S&P BSE Sensex.

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