Hexaware Technologies Expects Banking Business To Outperform In 2025

Hexaware Technologies Ltd. expects growth in its banking business to outgrow the company's average growth in calendar year 2025, according to the IT services company's Chief Executive Officer and Executive Director Srikrishna Ramakarthikeyan.

In a conversation with NDTV Profit on Friday, he noted that the banking, financial services and insurance vertical of the company is insulated from the impact of US tariffs. He expected a sharp turnaround in the BFSI business of the company by the second quarter of 2025, while predicting double-digit quarter-on-quarter growth in the banking segment.

“Banking, financial services, and insurance are not first-order impacted by tariffs. They contribute over 50% of our revenue. By the end of CY25, banking will outgrow the company's average growth rate. We have a large pipeline. As early as Q2, we will see a very sharp turnaround. We may see double-digit quarter-on-quarter growth for banking,” he said during a conversation with NDTV Profit.

It is important to note that Hexaware Technologies follows a January-to-December cycle for financial reporting.

While banking currently contributes about 8% to the company's revenues, healthcare and insurance account for roughly 20%. Ramakarthikeyan said that healthcare and insurance will not drive the company's growth and are expected to perform in line with the company's average growth.

The CEO acknowledged the impact of funding cuts that research organisations in the US have faced. “We don't have work directly from agencies that get funding, but we do have licences, customers. There is a general downward kind of sentiment on vaccines and drug manufacturers. So, the life sciences part of the health care part will do somewhat worse than what it could have otherwise,” he said.

Insurance will outperform healthcare, he said. He highlighted that the company struck a deal with the “world's largest pet insurance company” earlier in the year. “Pet insurance is a growing segment, and we aim to become a key vendor in this space,” Ramakarthikeyan said.

The top executive noted that the manufacturing and consumer segment faced first-order impacts due to the tariffs. It has not done as well as the company average and the weakness is going to continue, he said. “Fortunately for us, it's only 15% of our revenues,” he added.

Moving forward, he expects headwinds to be resolved in the company's third quarter, which starts in July. “Quarter three will accelerate growth,” he said.

Shares of Hexaware Technologies settled 0.7% higher at Rs 704.7 apiece on the BSE, compared to 0.32% rise in the benchmark Sensex.