HEXAWARE TECHNOLOGY

About The Company:

Hexaware is a global IT provider with a revenue over $422.4 million.Comapny operates in IT, BPO and consulting services provides servicesto Banking, Financial Services,capital market ,Healthcare ,Insurance,travel,transportation,Logistics,Manufacutring & Consumers .Company global operations located in North America, Europe and Asia Pacific.

Investment Rationnel:

• FY 2014 revenue stood at 2581.7cr .It is up 13% yoy basis.                  

• Cash & Cash equivalents at the end of March 2015 at US$ 56.34 mn.

• Q1 2015 revenue at 713.4 Crores; up 0.2% QoQ & 21.1% YoY .

• Q1 2015 revenue at 713.4 Crores; up 0.2% QoQ & 21.1% YoY

• EBIT for Q1 2015 at 115.5 crores; up 12.6% from 102.5 crores last quarter

• Q1 2015 PAT at 83.3 crores

• Cash & Cash equivalents at the end of March 2015 at 352 crores

Risk Factor:

• Micro Economic Risk: The  pricing pressure and decreased employee utilization rates is a major concern.Company major revenue comes from US and Europe an economic slowdown in economy could negatively hamper the business.

• Delivery and operational risk:The growth and success depends on its ability to hire, attract,motivate, retain and train highly skilled technology personnel .

• Regulatory Risk:Any change in regulations in any  of its operations may deviate the growth and might result in decrease revenue if not according to the desired effect.

• Business Model Redundancy:The new technologies , such as cloud, big data mobiles smart devices and social media are impacting the behavior of the consumers.

• Cost Pressure: Increasing employee cost and operating expenses may create pressure on margin.The company is focusing on improving productivity and put up a framework for cost management.

Conclusion and Remarks:

Recent quarterly results were not up to the market expectations.However revenue increases at 4.1% and EBITDA grows at 4.5 % qoq basis.Management assures the investors about  the continuing growth story and confirms the lower quarterly numbers are just the seasonality factor.

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