Wednesday, August 1, 2012
Hexaware technologies limited - Results for 2nd Qtr ending June,2012. - Revenue -Rs.500 cr;up 50% YoY; PAT at Rs.89 Cr;Up 48% YoY;
Hexaware technologies limited
Results for 2nd Qtr ending June,2012.
Q2 2012 Revenue cross Rs.500 Cr; First Time ever
50% Y-o-Y growth in Rs. terms; 14% Q-o-Q in Rs. terms
EBITDA margin at 22.9%; up 764 bps Y-o-Y; up 53 bps Q-o-Q
Q2 2012 Profit after Tax at ` 89 Cr up 48% Y-o-Y
Hexaware Q2 2012 revenue grew to $ 91.2 mn up 3.6% Q-o-Q sequentially in $
terms (up 14.1% Q-o-Q in Rs. terms to Rs. 500.1 Cr)
In constant currency terms, Hexaware Q2 2012 revenue growth would have been
4.4% Q-o-Q; towards the upper end of the published quarterly revenue guidance
Q2 2012 saw robust volume growth of 4.2% Q-o-Q
EBITDA margins up 764 basis points Y-o-Y; up 53 bps Q-o-Q to 22.9%; in spite of
annual compensation revision at offshore work locations and H1B visa filing costs
Profit before Tax was up 55.9% Y-o-Y; at ` 112 Cr, up 6.8% on a Q-o-Q basis
Q2 2012 Profit after Tax (PAT) grew to Rs. 89.0 Cr; up 48% Y-o-Y & 0.8% Q-o-Q
Cash & Cash equivalents at the end of June 2012 stood at Rs. 429.6 Cr; after
paying 2011 final dividend and first interim dividend of 2012. Hexaware remains
a zero debt company
DSO reduced Q-o-Q sequentially from 52 days to 45 days at the end of Q2 2012
Return on Equity increased from 23.4% at the end of Q2 2011 to 32.95% at the
end of Q2 2012 on annualized basis.
12 new clients added in Q2 2012; 210 active clients currently
Global Headcount increased by 109 Q-o-Q to 8,733 at the end of June 2012; Up
1,314 compared with June 2011
Attrition declined further in Q2 2012 to 9.6% on a trailing twelve months basis
Hexaware says - “We have delivered above industry revenue growth and robust profit margin performance for 9 successive quarters under the prevalent global macro-environment regime. The strong performance of 7.2% CQGR in revenue and 22% in EBITDA over the last 9 Quarters substantiates the sustained growth at Hexaware. Over the same period, we have also had a healthy client addition and have added 12 new clients in the last quarter. Our number of active clients has increased to 210, of which 50+ belong to Fortune / Global 500 clients”,
“The initiatives taken over the recent quarters have resulted in healthy addition of new logos – 51 in 2011 and 24 in the first half of 2012. … With the healthy pipeline and on the back of several strategic steps currently underway, we remain firmly on track to deliver 20%+ revenue growth during 2012”, said P. R. Chandrasekar, CEO and Vice Chairman.
Q3 2012 Revenue Guidance
Revenue for Q3 2012 is likely to be in the range of $ 92.5 mn - $ 94.0 mn (exchange rates
taken at 1 £ = 1.57 $, 1 € = 1.23 $ and 1 $ = ` 55.59); a Q-o-Q sequential revenue growth
in $ terms of 1.4% - 3.0%
Second Interim Dividend of 2012
The Board of Directors declared a second interim dividend of Rs.1.50 per share (75%) on FV of Rs. 2 each.
Enterprise Solutions – Business Update
Over the last couple of years, Hexaware has delivered several successful instances of PeopleSoft v9.1 upgrades and roll-out to its clients across all the geographies and spanning several lines of business. This period also saw Enterprise Solutions Horizontal add 40 new clients over the last 10 quarters. There are several strategic initiatives underway to strengthen the core capabilities in PeopleSoft through focus on Innovation and creation of different toolkits and internally, getting ready for the launch of PeopleSoft v9.2 to continue with the growth momentum and sustain the successful performance over the medium term.
During the previous quarter, the Company added 12 new clients across all its key focus areas. Of these, 3 clients were added in the Banking and Financial Services (BFS) Domain and 1 in Travel and Transportation Vertical.
From a horizontal service line perspective, 4 clients were won in Enterprise Solutions space, 3 in Business Intelligence & Business Analytics (BI / BA) and 2 each in Business Process Outsourcing and Quality Assurance & Testing Services (QATS) business segments.
Of the 12 clients added in Q2 2012, 6 customers are based in Americas, 3 in Europe and 3 in Asia Pacific (APAC) region. For the quarter just completed, 63.3% of revenues originated from Americas, 29.2% from Europe, and the remaining 7.5% from the Asia Pacific region. Repeat business remained healthy at 93.2%.
The number of clients registering annual revenues in excess of $ 20 mn each remained steady at 3; clients in the $ 10 mn - $ 20 mn range remained stable at 3, 7 clients in the $ 5 mn - $ 10 mn range, 44 clients in the $ 1 mn - $ 5 mn category and the clients with $ 1 mn+ increased further to 57 – all on a trailing twelve months basis. At the end of the quarter, the number of active clients improved to 210.
At the end of June 2012, the headcount increased to 8,733; up 109 from March 2012 and an increase of 1,314 compared with June 2011. For the IT business, the technical personnel comprised 92.1% of the work force.
Consolidated Income Statement (as per Indian GAAP) Rs.in` Mn
Item :: Q2 12 :: Q1 12 :: QoQ% :: Q2 11 :: YoY%
Revenues :: 5,001:: 4,383 :: 14.1% :: 3,341 :: 49.7%
Direct Costs :: 2,995 :: 2,574 :: 16.4% :: 2,117 :: 41.5%
Gross Profit :: 2,006 :: 1,809 :: 10.9% :: 1,224 :: 63.8%
Selling, General & Admn :: 859 :: 827 :: 3.8% :: 713 :: 20.4%
EBITDA :: 1,147 :: 982 :: 16.8% :: 511 :: 124%
Deprecn :: 76 :: 71 :: 7.3% :: 59 :: 29.0%
Operating Profit = EBIT :: 1,071 :: 911 :: 17.5% :: 452 :: 137%
Other Income (net) :: 104 :: 112 :: -6.7% :: 104 :: 0.5%
Forex Gains / (Losses) :: (55) :: 26 :: N.M :: 163 :: N.M
Profit Before Tax :: 1,120 :: 1,049 :: 6.8% :: 718 :: 55.9%
Provision for Tax :: 230 :: 165 :: 39.2% :: 116 :: 98%
Profit After Tax :: 890 :: 884 :: 0.8% :: 602 :: 47.8%
Basic 3.01 3.01 - 2.06 0.95
Diluted 2.96 2.94 0.02 2.01 0.95
The improvement in EPS is impressive. The company is a fairly good Dividend distributor to the Investors.
52 week high/low price : 133.85/67.90
Current Price :Rs.114
10-May-2012 : INTERIM DIVIDEND RS.1.50 PER SHARE
29-Mar-2012 : FINAL DIVIDEND-RS.1.50 PER SHARE
03-Nov-2011 : INTERIM DIVIDEND RE.1/- PER SHARE
05-Aug-2011 : INTERIM DIVIDEND RE.1/- PER SHARE
26-May-2011 : INTERIM DIVIDEND - RS.0.50 PER SHARE
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