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.
Business
Updates
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.
Human
Capital
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%
EPS-INR
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
CORPORATE
ACTIONS
Ex-Date
Purpose
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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* E N D *
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