Hexaware Technologies Share Price Falls 6% Despite Strong Profit Growth

Market Performance

Hexaware Technologies Ltd. saw a significant drop in its stock price during Friday's trading session. The shares fell by 6.75%, reaching an intraday low of Rs 763.95 per share on the NSE. This decline was mainly due to the company's sluggish growth in the December quarter.

Main News

Hexaware Technologies reported its financial results for the fourth quarter of the 2024 calendar year, which ended on December 31, 2024. Despite posting a notable year-on-year growth, the company's performance in the quarter fell short of expectations. The company attributed this soft performance to marginally negative macroeconomic trends observed in the final weeks of the quarter. However, Hexaware remained optimistic about its performance in 2025, projecting resilience despite modest macroeconomic shifts.

Company Details

Hexaware Technologies is a prominent IT service sector player and was listed on the Indian stock exchanges in February 2025. The company has demonstrated strong revenue growth yet faced challenges related to customer consolidation, as two of its top three clients went through restructuring. The company has secured deals with these clients and anticipates a ramp-up in business in the coming quarters.

Financial Performance

Revenue

Hexaware's revenue for the December quarter of 2024 stood at Rs 3,154 crore, reflecting a growth of 20.58% compared to Rs 2,616 crore in the same period last year.

EBITDA

The company's EBITDA margin increased by 30 basis points to 16.3% from the previous quarter.

Net Profits

The quarter's net profit was recorded at Rs 320.7 crore, marking a significant 66.33% rise from Rs 192.8 crore in the same period last year.

Constant Currency Revenue Growth

The constant currency revenue growth for the December quarter was 18.8% year-on-year and 0.2% sequentially.

Summary of the Article

Hexaware Technologies' financial results for Q4 of 2024 showed solid revenue and profit growth but were overshadowed by a slight dip in performance due to adverse macroeconomic factors. The company posted a substantial year-on-year increase in revenue and profits, with net profit seeing a significant 66.33% jump. Despite the challenges in the December quarter, the company maintains a positive outlook for 2025, expecting to remain resilient against modest macroeconomic changes. This was the first set of quarterly earnings after Hexaware's listing on the Indian stock exchanges in February 2025, where it raised significant capital.