Hexaware Technologies (HEXT) Q4 2007 earnings summary

Executive summary

• FY07 global operating revenue rose 22.6% to Rs. 10,398.03 million, while PAT fell to Rs. 72.29 million after a one-off Rs. 1,029.95 million foreign-exchange derivatives loss.

• Headcount reached 7,068, with 66 new clients taking active accounts to 175; 60 clients were Fortune 500/Global 500 companies.

Financial highlights

• Consolidated total income increased 22.5% to Rs. 10,686.74 million; revenue from operations increased 22.6% YoY.

• Profit before tax and exceptional items was Rs. 1,233.43 million versus Rs. 1,362.76 million; the exceptional loss reduced PBT to Rs. 203.48 million.

• Consolidated PAT was Rs. 72.29 million versus Rs. 1,242.33 million; standalone India operations recorded a Rs. 107.61 million net loss.

• Global EBITDA declined 6% to Rs. 1,470.16 million; employment expense rose 31.89% to Rs. 6,148.76 million.

Outlook and guidance

• 2008 priorities: innovation in service offerings and operational excellence, with expected advances in SOA and SaaS.

• Independent testing and enterprise solutions were expected to support growth; a formidable order book underpinned confidence in expanding clients, geographies and service lines.

• Offshoring demand was expected to rise amid cost and margin pressure; focused offerings were expected to support premium-priced new business.