Hexaware Tech Q1 Results: Profit Slips 6% Even As Revenue Climbs, Margin Improves

Hexaware Technologies Ltd. posted a mixed set of first-quarter results, with sequential growth in revenue and operating profit, while net profit declined from the previous quarter.

The IT services company's consolidated net profit fell 6.1% quarter-on-quarter to Rs 330 crore from Rs 352 crore in the previous quarter.

Revenue, however, rose 5.7% sequentially to Rs 3,845 crore compared with Rs 3,639 crore in the March quarter, indicating steady business momentum despite a challenging demand environment.

At the operating level, earnings before interest and tax (EBIT) increased 9% quarter-on-quarter to Rs 524 crore from Rs 480 crore. 

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The company's EBIT margin improved to 13.6% from 13.3% in the preceding quarter, reflecting better operational efficiency and improved cost management.

The expansion in operating margin came even as the company reported a decline in bottom-line performance, suggesting that factors below the operating line weighed on quarterly profitability.

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The earnings reflect Hexaware's ability to sustain revenue growth and strengthen operating performance, even as the broader information technology services sector continues to navigate macroeconomic uncertainties and cautious client spending.

Investors will closely track the company's management commentary on demand conditions, deal wins, discretionary IT spending and margin guidance for the rest of the financial year for cues on the sustainability of its growth trajectory.

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