Hexaware Technologies (HEXT) Q4 2012 earnings summary

Executive summary

• FY12 revenue reached ₹19,481.78 million, up 34.3% in INR and 18.3% in USD; EBIT rose 57% and PAT increased 22.7% to ₹3,276.47 million.

• Added 47 clients to reach 218 active accounts; repeat business contributed 93.2% of revenue.

Financial highlights

• Revenue from operations was ₹19,481.78 million versus ₹14,505.12 million in FY11; EBITDA was ₹4,040.37 million versus ₹2,613.44 million.

• Profit from operations, excluding FX difference, interest, other income and tax, rose 57% to ₹3,716.23 million; PAT rose 22.7% to ₹3,276.47 million.

• Gross margin improved 80 bps and operating margin 280 bps YoY; reported PAT margin was 16.8% in INR.

Outlook and guidance

• FY13 outlook called for double-digit revenue growth; Q1 FY13 sequential growth guidance was also issued, without a quantified rate in the cited discussion.

• Operating margins were expected to improve from early 2013, supported by onsite-offshore mix, utilization, employee pyramid and bill-rate levers.

• Growth priorities included expanding existing accounts, adding new logos, entering faster-growing markets and investing in Cloud, Mobility and Big Data.