Hexaware – ::: 2QFY2012 earning review by Angel Broking,

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Hexaware – 3QCY2011
Hexaware reported its 3QCY2011 results, which outperformed street as well
as our expectations on all fronts. USD revenue came in at US$78.8mn, up
5.3% qoq, majorly led by volume growth of 9.2% qoq and 1.2% qoq benefit
derived from increased onsite as well as offshore price realizations. In INR
terms, revenue came in at `366cr, up 9.6% qoq. EBITDA and EBIT margins
improved by 345bp and 348bp qoq to 18.7% and 17.0%, respectively, despite
giving wage hikes to onsite employees. Margin movement was affected by 1)
115bp qoq positive impact from increased price realization, 2) 105bp qoq
gain from INR depreciation against USD, 3) 75bp negative impact due to
wage hike given to onsite employees, 4) 140bp qoq benefit from lower SG&A
expense, 5) 15bp qoq negative impact due to unfavorable cross-currency
movement and 6) 75bp qoq benefit from effort shift offshore. PAT stood
higher at `65cr, up 7.4% qoq. We continue to be positive on the stock; but
owing to the recent run up in the stock price, we recommend a Neutral rating
on the stock.