We are well on track to meet the upper end of revenue guidance: R Srikrishna, Hexaware Technologies


Hexaware Technologies is a fast growing IT, BPO and Consulting Company. It serves customers in Banking, Financial Services, Capital Markets, Healthcare, Insurance, Manufacturing, Retail, Education, Telecom, Travel, Transportation and Logistics. It also deliver highly differentiated services in Rapid Application prototyping, development and deployment; Build, Migrate and Run cloud solutions; Automation-based Application support; Enterprise Solutions for digitizing the back-office; Customer Experience Transformation; Business Intelligence & Analytics;Digital Assurance (Testing); Infrastructure Management Services; and Business Process Services.

Replying to NewsBarons, R Srikrishna, CEO and Executive Director, Hexaware Technologies says “We have updated EBITDA growth guidance in the range of 16.5%-17.5% as against 14-15%.”

NB:Brief us about your Financials?

R Srikrishna: For the third quarter of the calendar year ended September 30, 2017, the Net profit stood at Rs.1423mn in the quarter ended September 2017.The revenue stood at Rs.9931mn.

NB:How was the quarter as a whole?

R Srikrishna: We are pleased to deliver a solid all round performance.The quarter as a whole has been good with robust numbers.

In Q3 2017, Healthcare & Insurance (H&I) showed a 7.4% QoQ and 17.8% YoY growth. Banking and Financial Services (BFS) gave 18.7% YoY growth. APAC led the geographic growth with 20.0% QoQ and 68.3% YoY growth.

Infrastructure Management Services (IMS) showed strong growth of 3.4% QoQ and 48.0% YoY. Business Process Services (BPS) delivered growth of 2.5% QoQ and 21.6% YoY.

We had a Strong TCV Booking of $43 Mn from new customers, in line with our Shrink IT Grow Digital strategy.

Cash & Cash equivalents at the end of September 2017 was at US$ 70.73 mn.

NB: Your outlook for the coming quarters?

R Srikrishna: We are well on track to meet the upper end of revenue guidance and beat the upper end of guidance on profitability.The company has forecast 14-15% revenue growth guidance.

We have updated EBITDA growth guidance in the range of 16.5%-17.5% as against 14-15%.

Will still be close to double digit YoY growth.

NB: What is your revenue mix in terms of geographies?

R Srikrishna: On QoQ basis, APAC led the growth with 20%.

on YoY basis, about 79% of our revenue comes from North America, 10% from APAC and remaining 11% from Europe.

NB: What was the attrition rate?

R Srikrishna: The attrition rate stands at 13.7%. Our attrition were back to low levels.

NB: What was the headcount for Q3?

R Srikrishna: The Headcount stood at 13,488 at the end of Q3 2017. About 390 employees were added in this quarter.