Hexaware Technologies (HEXT) Q4 2003 earnings summary

Executive summary

• FY2003 global operating revenue Rs. 3,389.85m, up 36.36% YoY; total income Rs. 3,528.81m, up 41.31%.

• Growth reflected 28 new client wins, repeat business, improved billing rates and utilization, and cost rationalization; client base reached 93.

• Repeat business rose to 76% of revenue from 68% in 2002; customer relationships and delivery capacity remained core growth drivers.

Financial highlights

• Consolidated EBITDA Rs. 449.64m vs. Rs. 149.00m, up 201.77% YoY; operating profit growth attributed to productivity, billing rates and cost controls.

• Consolidated PAT Rs. 260.81m vs. Rs. 22.24m; including associate profit, PAT was Rs. 328.86m vs. Rs. 57.50m.

• Other income Rs. 138.96m vs. Rs. 11.35m, driven mainly by the Mentorix investment sale and mutual fund income.

• India operations revenue Rs. 1,547.59m, up 58.40%; PAT Rs. 303.74m vs. Rs. 74.75m.

Outlook and guidance

• FY2004 guidance: revenue growth of 48% to exceed US$108m, net profit after taxes of 10.37%, and EPS of Rs. 20.30 from operations.

• Order book exceeded US$170m, capacity utilization was 72%, and infrastructure and people investments were planned against the order pipeline.

• Focus areas for 2004 included BFSI, transportation, PeopleSoft, new customer acquisition, repeat business and broader geographic reach.