CEO and Vice Chairman of Hexaware Technologies P R Chandrasekar said, “The investments made in strengthening the domain competency and the technical capabilities augmented by the increase in the field sales presence has paid off with healthy revenue growth in Q2 2014. Revenue fromTop 10 clients registered a healthy growth of 6.8% Q-o-Q. These investments enable the Company to drive healthy revenue growth consistently over the long term.”
Second Interim Dividend of 2014
The Board of Directors declared a second interim dividend of `1.60 per share (80%) on equity shares of ` 2.00 each. The record date is fixed as Saturday, 2ndAugust 2014 for determining the shareholders entitled for this second interim dividend of the year 2014. The payment shall be made on August 8th, 2014. This would result in a cash outflow of `56.2 Crores for dividend payment including tax, amounting to a dividend payout ratio of 73% for Q2 2014.
Earlier in the year, the Board of Directors declared a first interim dividend of ` 3.00 per share (150%) on equity shares of ` 2.00 each. This had resulted in a cash outflow of ` 105.0 Crores for dividend payment including tax, amounting to a dividend payout ratio of 150% for Q1 2014.
Strategic Deal Win in the “Digital” space
During the Quarter, Hexaware has been selected as a strategic partnerby a large global corporate in the Asia Pacific Geography, to assist them in all their digital initiatives and walk the journey with them as they aim to be 1st100% digitized company in their business domain for their geographical regionby 2016. Under this agreement, Hexaware will also be their partner to maintain all of their existing applications and effectively replacing all the existing vendors.
Corporate Update
Hexaware strengthened its board with the induction of two additional Directors during the quarter, Q2 2014. Basab Pradhan was inducted on the Board of Directors of the Company in the capacity of an Independent Non- Executive Director. He has had a successful career spanning IT Services, Technology and Consumer Marketing industries. His longest tenure has been with Infosys Ltd. where he spent 13 years over two stints.
The Company also inducted Christian Oecking on its Board in the capacity of an Independent Non- Executive Director. He was the CEO/Chairman of Siemens IT Solutions and Services (SIS) in 1999 and became Member of the Board of Siemens AG. He supports several companies with board memberships / independent director positions or advisory roles.
Business Update
The revenue growth during Q2 2014 was broad-based with all the three Geographies registering impressive growth: America grew at 6%; Europe 3% and APAC at 10% on a Q-o-Q basis.
During the previous quarter, the Company added 13 new clients across all its key focus areas. Of these, 1 client was added in the Healthcare & Insurance (H&I) Domain and 2 clients each were added in the Banking & Financial Services (BFS) space and in the Travel and Transportation Vertical and 4 clients in the Manufacturing& Retail Vertical. Of the 13 clients added in Q2 2014, 8 customers are based in Americas, 3 in Europe and 2 in Asia Pacific (APAC) region.
From a horizontal service line perspective, 5 clients were added in Human Capital Space (Enterprise Solutions), 2 clients each in Business Intelligence and Business Analytics (BI/ BA) Horizontal and Business Process Services (BPS) and 1 client each in Quality Assurance and Testing Services (QATS) and Remote Infrastructure Management Services (Remote IMS) service line.
Foreign Exchange Cover
The Company has hedges worth $ 118.9 mn at an effective rate of ` 59.32 and € 5.9 mn at an effective exchange rate of ` 77.28 maturing over the course of the next five quarters (from July 2014 to July 2015).
Awards andRecognition
Hexaware has been mentioned as an eBaoTech partner and one of the Tier 1 IT services organizations, in the Gartner report titled, “Market Share Analysis: Insurance Vertical-Specific Software, 2013” dated 17 April 2014 by analysts Derry N. Finkeldey and Jennifer Mazzucca.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Hexaware reports Q2 2014 revenue at US$ 102 mn; up 6.3% Q-o-Q in US$ terms
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