Hexaware Technologies (HEXT) Q4 2011 earnings summary

Executive summary

• FY11 revenue from operations rose 37.6% in INR and 33.3% in USD to ₹14,505.12m and $308.11m, respectively.

• PAT increased 148% to ₹2,670.27m; profitability expanded sharply, with EBITDA margin reaching 23% in Q4.

• Four large deals were signed during 2011, while 51 new clients lifted active clients to 192.

Financial highlights

• Revenue from operations was ₹14,505.12m, up 37.6% YoY; USD revenue was $308.11m, up 33.3%.

• EBITDA rose 188.8% to ₹2,614.94m; operating profit, excluding exceptional items, FX differences, interest, other income and tax, rose 257% to ₹2,367.91m.

• PAT increased 148% to ₹2,670.27m; PBT was ₹3,076.78m versus ₹1,168.22m in 2010, which included ₹224.08m of exceptional items.

• No exceptional item was recorded in 2011; 2010 included a ₹224.08m exceptional item.

Outlook and guidance

• FY12 revenue guidance was at least $370m, implying minimum YoY growth of 20%; management expected growth ahead of the estimated industry range of 11%–14%.

• Q1 2012 revenue guidance was 4% QoQ growth; 2012 operating margins were expected to be maintained or improved from Q4’11 levels on a constant-currency basis.

• Planned FY12 net headcount additions exceeded 1,500, with focus on Healthcare and Insurance, Remote IMS, BI/BA, SAP and Oracle E-Business growth.