Hexaware Technologies, a global IT solutions and services provider, has reported a strong performance in the first quarter of calendar year 2025. The company announced a 117 basis points year-over-year expansion in EBITDA and a 16.7% increase in EPS to INR 5.38.
Financial Summary and Highlights:
– Revenue for Q1CY25 stood at USD 371.5 million, representing a 12.4% year-over-year growth. In INR terms, revenue was INR 32,079 million, up 16.7% year-over-year.
– EBITDA for the quarter was USD 62.1 million, with a 20.8% year-over-year increase. In INR, EBITDA was INR 5,322 million, showing a 24.3% year-over-year growth.
– Profitability metrics showed a 41 basis points quarter-over-quarter and 117 basis points year-over-year improvement in EBITDA margins. The basic EPS for Q1CY25 was reported at INR 5.38, reflecting a 16.7% year-over-year increase.
Key Client Metrics:
– Hexaware reported 3 customers generating more than $75 million in revenue, with one customer falling in the $100 million+ category.
– The Net Promoter Score (NPS) of 67 was 27 points higher than the industry median.
– The revenue concentration from the top 5 customers was at 25.7% in the last twelve months of Q1CY25.
Key People Metrics:
– The company had a closing headcount of 31,564 employees, with a net addition of 1,429 in the last twelve months.
– The voluntary attrition rate for the IT service line was reported at 11.2%, and the utilization rate for IT professionals was 82.1% in Q1CY25.
Other Key Metrics:
– Days Sales Outstanding (DSO) stood at 75 in Q1CY25, with billed DSO at 39.
– The adjusted cash conversion percentage for the last twelve months of Q1CY25 was at 61.9%.
– The company reported a strong cash and cash equivalents position of INR 19,087 million as of March 31, 2025.
In a statement, Hexaware CEO R. Srikrishna expressed confidence in the company’s growth trajectory, emphasizing the focus on delivery excellence and investment in differentiated capabilities.
CFO Vikash Jain highlighted the company’s resilience in achieving a 12.4% year-over-year revenue growth and expanding margins despite economic uncertainties, attributing the success to operational excellence.
Key Wins:
– Hexaware secured contracts for modernizing grant management systems, finance and HR platform transformations, application modernization for global banks, settlement platforms for travel players, infrastructure consulting for multinational law firms, legacy application elimination for health and technology companies, AI-based platforms for legal advisory firms, and IT services for pet insurance companies.
The company’s forward-looking statements acknowledge the risks and uncertainties in the IT services industry, emphasizing the need for continual innovation and adaptation. Hexaware’s commitment to transparency is highlighted through the use of non-GAAP financial measures to supplement GAAP reporting.
In conclusion, Hexaware’s strong performance in Q1CY25 demonstrates its ability to navigate challenges and drive growth through innovation and operational excellence. With a focus on client satisfaction, employee engagement, and financial sustainability, the company is well-positioned for continued success in the dynamic IT services landscape.