announces q2 results, results press release & auditors report for june 30, 2015 [result]
TRANSCRIPT
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8/20/2019 Announces Q2 results, Results Press Release & Auditors Report for June 30, 2015 [Result]
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Financial Release June 30, 2015
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Hexaware announces robust 5.6% revenue growth in USD
Profitability outgrows Revenue
EBITA* at $22.1 Mn, up 6.9% QoQ ; EBITA* Margin up 20 bps QoQ
PAT at $15.5 Mn, up 15.7% QoQ ; PAT Margin up 110 bps QoQ
QoQ YoY
Revenue (Constant Currency ) 121.19 5.5% 22.2%
Q2 15
Growth
USD Mn
QoQ YoY QoQ YoYRevenue 7,722 8.2% 26.5% Revenue 121.3 5.6% 19.0%
EBITDA* 1,403 9.4% 38.0% EBITDA* 22.1 6.9% 29.9%
EBIT 1,208 4.6% 32.9% EBIT 19.0 2.2% 25.1%
PAT 989 18.7% 29.2% PAT 15.5 15.7% 21.4%
Growth
`
Mn Q2 15
Growth
US Mn
Q2 15
Revenue
Q2 2015 revenue at $121.3 Mn, up 5.6% QoQ; up 19.0% YoY
Q2 2015 revenue at $121.19 Mn in constant currency; up 5.5% QoQ & 22.2%
YoY
Profitability
Gross margin for Q2 2015 at 36.0%, up 30 bps QoQ
EBITDA* for Q2 2015 at $22.1 Mn, up 6.9% from $20.6 Mn in Q1 2015; YoY
growth was 29.9%
EDITDA* margin for Q2 2015 at 18.2%, up 20 bps from 18.0% in Q1 2015, up
160 bps YoY
EBIT at $19 Mn, up 2.2% from $18.6 Mn in Q1 2015; YoY growth was 25.1%.
EBIT margin at 15.7%. (including ESOP cost)
Q2 2015 PAT at 15.5 Mn, up 15.7% from $13.4 Mn in Q1 2015; YoY growth
was 21.4%
PAT margin at 12.8%, up 110 bps from 11.7% in Q1 2015, up 30 bps YoY
Return on Equity (RoE) at 30.9 % at the end of Q2 2015 up from 26.9% last
quarter
EBITDA* - Excludes ESOP Cost of $1.26 Mn in Q2, Q1 2015 restated to show ESOP cost of
$0.19 Mn.
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Financial Release June 30, 2015
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Cash
Cash & Cash equivalents at the end of June 2015 at US$ 63.21 Mn Days of Sales Outstanding (DSO) was 47 days at the end of Q2 2015
Second Interim Dividend of ` 2.00 (100%) for Q2 2015
New Wins
9 new clients added in Q2 2015
Human Capital
Headcount stood at 11,009 at the end of Q2 2015; up 909 QoQ & 1,722 YoY
399 fresh graduate engineers added in Q2 2015
Utilization stood at 72.1% (including trainees) in the quarter
Attrition at the end of June 2015 was at 17.1%
Performance based ESOP scheme announced for key leadership, vesting
linked to long term performance metrics
Performance highlights in`
terms
Q2 2015 revenue at ` 772.2 Crores; up 8.2% QoQ and 26.5% YoY
EBITDA* for Q2 2015 at ` 140.3 Crores; up 9.5% from ` 128.2 Crores in Q1
2015. YoY growth of 38%
EBIT for Q2 2015 at ` 120.8 Crores; up 4.7% from ` 115.5 Crores in Q1 2015;
YoY growth of 32.9%. (including ESOP cost)
Q2 2015 PAT at ` 98.9 Crores; up 18.6% from ` 83.3 Crores in Q1 2015; YoY
growth of 29.1%
Cash & Cash equivalents at the end of June 2015 at ` 402 Crores
EBITDA* - Excludes ESOP Cost, Q1 2015 restated to show ESOP cost.
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Financial Release June 30, 2015
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Performance Highlights in US$ terms
Mn
EBITDA* - Excludes ESOP Cost of $1.26 Mn in Q2, Q1 2015 restated to show ESOP cost of$0.19 Mn.
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Financial Release June 30, 2015
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Q o Q Y o Y
Consolidated Company 5.6% 19.0%
Americas 5.7% 22.5%
Europe 8.0% 12.4%
Asia Pacific -2.0% -6.3%
Application Devt & Maint (ADM) 6.4% 24.1%
Enterprise Solutions -2.9% -8.8%
Testing / QATS (Quality Assurance and Testing
Services)
6.3% 24.7%
Business Intelligence & Analytics 3.6% 25.5%
Business Process Services (BPS) 14.9% 52.9%
Infrastructure Management Services (IMS) 17.4% 17.2%
Banking and Financial Services 3.6% 30.8%
Travel & Transportation 11.3% 13.0%Healthcare & Insurance 6.2% 11.0%
Manufacturing, Consumer & others 4.5% 14.1%
Vertical Split
Particulars Segments
30-Jun-15
Geography
Service Lines Split
Mumbai – August 4, 2015: Hexaware Technologies Limited, a leading global provider of IT,
BPO and Consulting services has just reported robust performance for the second quarter of
the calendar year ended June 30, 2015.
“This Quarter witnessed significant revenue growth with Europe leading among geographies
with 8% QoQ growth. Hexaware’s focused customer mining strategies and investments in
digital technologies have also started yielding results.” remarked Atul Nishar, Chairman,Hexaware Technologies Limited.
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Financial Release June 30, 2015
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“The robust customer acquisitions during the quarter are early results of our investments increating differentiated solutions. These will help improving sustainability of our revenuegrowth in the future.” stated R Srikrishna, CEO & Executive Director, Hexaware
Technologies Limited.
Second Interim Dividend of 2015
The Board of Directors declared a second interim dividend of ` 2.00 per share (100%) on
equity shares of ` 2.00 each. The record date is fixed as Friday, August 14, 2015 for
determining the shareholders entitled for this second interim dividend of the year 2015. The
payment shall be made on August 20, 2015. This would result in a cash outflow of ` 72.55
Crores for dividend payment including tax, amounting to a dividend payout ratio of 73% for
Q2 2015.
Earlier in the year, the Board of Directors declared a first interim dividend of ` 2.00 per share
(100%) on equity shares of ` 2.00 each. This had resulted in a cash outflow of ` 72.48 Crores
for dividend payment including tax, amounting to a dividend payout ratio of 87% for Q1
2015.
Business Update
Americas led the geographic growth with Europe clocking the higher percentage increase,
though on a smaller base. Travel and Transportation led growth among verticals in Q2 2015.
Application Development & Maintenance (ADM) led growth among service lines in value
terms, while Infrastructure Management Services IMS clocked the highest percentage
increase in Q2 2015.
During the previous quarter, the Company added 9 new clients across all its key focus areas.The company added 3 clients each in the Manufacturing and Consumer Vertical and Travel
and Transportation Segment. 2 clients were added in Healthcare & Insurance and 1 client wasadded in Banking and Financial Services Segment. Of the 9 clients added in Q2 2015, 5customers are based in Americas, 2 each in Europe and Asia Pacific (APAC) region.
From a horizontal service line perspective, 3 clients were added in Infrastructure ManagementServices (IMS), 2 clients each in Business Intelligence (BI) and Enterprise Solutions (ES), 1client each in Applications Development & Maintenance (ADM) and Quality Assurance andTesting Services (QATS).
Foreign Exchange Cover
The Company has hedges worth $ 177.00 Mn at an effective rate of ` 67.73 and € 6.68 Mn at an effective
exchange rate of ` 75.68 maturing over the course of the next eight quarters (from July 2015 to April
2017).
Awards and Recognition
During the last quarter, an advanced analytics solution from the Company has been
recognized among Top 50 Solutions in Analytics Excellence by NASSCOM (National Association
of Software and Services Companies).
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Hexaware has been mentioned as one of the notable application development deals due to
expire in the next 6 months in the Ovum report titled “IT Services Contracts MonthlyRoundup, March 2015” dated 05 May 2015 by analyst Mohammed Habeebuddin.
Hexaware has been mentioned as one of the India centric service providers of Digital Businessin the Gartner report titled “Market Trends: Digital Business Awakens Optimism as NewGrowth Opportunities Arise in Western European Application Service Market” dated 06 May2015 by analysts Susanne Matson, Gilbert van der Heiden.
Hexaware has been mentioned as one of the India-based Business Intelligence serviceproviders in the Gartner report titled, “Market Guide for Business Intelligence ServiceProviders, Asia/Pacific and Japan” dated 27 May 2015 by analysts Twiggy Lo and Daniel Yuen.
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 orimplied, with respect to this research, including any warranties of merchantability or fitnessfor a particular purpose.
About Hexaware Hexaware is a leading global provider of IT, BPS and consulting services. The Company focuses on keydomains such as Banking, Financial Services, Capital Market, Healthcare, Insurance, Travel,Transportation, Logistics, Manufacturing and Consumer. Our business philosophy, “Your Success is OurFocus”, is demonstrated through the success we ensure for our clients. Hexaware focuses on deliveringbusiness results and leveraging technology solutions by specializing in Application Development &Maintenance, Enterprise Solutions, Human Capital Management, Business Intelligence & Analytics,Quality Assurance and Testing Services, Remote Infrastructure Management Services and BusinessProcess Services. Founded in 1990, Hexaware has a well-established global delivery model armed with
proven proprietary tools and methodologies, skilled human capital and SEI CMMI-Level 5 certification.For additional information logon to: www.hexaware.com
Safe Harbor Statement Certain statements in this press release concerning our future growth prospects are forward-lookingstatements, which involve a number of risks, and uncertainties that could cause actual results to differmaterially from those in such forward-looking statements. The risks and uncertainties relating to thesestatements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, ourability to manage growth, intense competition in IT services including those factors which may affect ourcost advantage, wage increases in India, our ability to attract and retain highly skilled professionals,time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions onimmigration, our ability to manage our international operations, reduced demand for technology in ourkey focus areas, disruptions in telecommunication networks, our ability to successfully complete andintegrate potential acquisitions, liability for damages on our service contracts, the success of thecompanies in which Hexaware has made strategic investments, withdrawal of governmental fiscalincentives, political instability, legal restrictions on raising capital or acquiring companies outside India,and unauthorized use of our intellectual property and general economic conditions affecting ourindustry.
For more information contact:
Sreedatri Chatterjee
Hexaware Technologies Limited
Tel: +91 (22) 6654 2682 / 83
e-mail: [email protected]
http://www.hexaware.com/http://www.hexaware.com/mailto:[email protected]:[email protected]:[email protected]://www.hexaware.com/