Date:28/01/2005 URL: http://www.thehindubusinessline.com/2005/01/28/stories/2005012800520500.htm

Back Hexaware Q4 net up multi-fold

Our Bureau

The Chairman of Hexaware Technologies, Mr Atul Nishar (right), with the CEO and Vice-Chairman, Mr Rusi Brij, at a press conference in Mumbai on Thursday. — Paul Noronha

Mumbai , Jan. 27

HEXAWARE Technologies Ltd has reported a multi-fold increase in net profit, at Rs 21.3 crore, for the fourth quarter ended December 2004, compared with Rs 2.86 crore in the corresponding year-ago quarter.

Total income increased by 70.4 per cent, to Rs 84.46 crore from Rs 49.55 crore.

"Pricing has remained stable while offshore volumes have increased significantly. We signed $61 million of new business in the last six months," the company CEO and Vice-Chairman, Mr Rusi Brij, said at a news conference here on Thursday.

The offshore ratio went up from 39.5 per cent to 41.6 per cent, quarter on quarter. Billing rates went up for both onsite and offshore work, he said.

For the year, the company reported a net profit of Rs 43.7 crore — 44.1 per cent higher than Rs 30.37 crore previously. Total income increased by 49 per cent, to Rs 269 crore (Rs 180.5 crore).

The consolidated net profit for the fourth quarter reported by the Hexaware Group amounted to Rs 21.4 crore (Rs. 7.54 crore), an increase of 184.6 per cent. Gross revenues rose 52.8 per cent, to Rs 157 crore, up from Rs 102.7 crore.

The company's consolidated annual net profit for the fiscal ended December 2004 amounted to Rs 63.7 crore, 271 per cent higher than the previous year's Rs 17.1 crore.

Operating margin increased 288.9 per cent to Rs 62.5 crore, up from Rs 16 crore.

The gross margin ratio improved to 37.9 per cent, up from 36.6 per cent the previous year.

There was a substantial 96.2 per cent increase in other income, at Rs 9.7 crore, which was gains from investments, real estate and foreign exchange.

The company acquired 12 new customers during the quarter across all regions. The company has declared a dividend of 50 per cent for the fiscal now ended.

The Hexaware board will meet on February 21 to review and recommend a share split, said a company statement.

The company's guidance for the next year provides for annual revenue growth of 40 per cent, to see revenues at $170 million (around Rs 750 crore) and a bottomline growth of 80 per cent, with projected net profit at $25.2 million (Rs 110 crore).

The company has acquired 28 acres of land near Chennai for its expansion plans.