{"id":4950,"date":"2025-03-07T18:54:58","date_gmt":"2025-03-07T13:24:58","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=4950"},"modified":"2025-05-22T12:08:26","modified_gmt":"2025-05-22T06:38:26","slug":"hexaware-technologies-shares-decline-7","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/hexaware-technologies-shares-decline-7\/","title":{"rendered":"Hexaware Technologies Shares Decline 7% After Muted Q4 Earnings"},"content":{"rendered":"<h2 data-start=\"100\" data-end=\"200\">IT Services Firm Reports Sluggish Sequential Growth Despite Strong Year-on-Year Performance<\/h2>\n<p data-start=\"202\" data-end=\"574\">Hexaware Technologies witnessed a sharp 6.9% decline in its share price on Friday, closing at \u20b9763.45 on the BSE, following the release of its Q4 FY24 earnings report. While the IT services company reported a 66.3% YoY jump in net profit, concerns over sluggish sequential growth and macroeconomic headwinds weighed on investor sentiment.<\/p>\n<h3 data-start=\"576\" data-end=\"637\">Highlights of Hexaware Technologies\u2019 Q4 Results<\/h3>\n<ul data-start=\"639\" data-end=\"1046\">\n<li data-start=\"639\" data-end=\"722\">Net profit rose 66.3% YoY to \u20b9320.7 crore from \u20b9192.8 crore in Q4 FY23.<\/li>\n<li data-start=\"723\" data-end=\"775\">Revenue increased 20.6% YoY to \u20b93,154 crore.<\/li>\n<li data-start=\"776\" data-end=\"881\">Constant currency (CC) revenue growth stood at just 0.2% QoQ, signaling a slowdown in demand.<\/li>\n<li data-start=\"882\" data-end=\"936\">EBITDA margin improved by 30 bps QoQ to 16.3%.<\/li>\n<li data-start=\"937\" data-end=\"1046\">Revenue in US dollar terms declined by 0.5% QoQ to $372 million from $374 million in Q3 FY24.<\/li>\n<\/ul>\n<h3 data-start=\"1048\" data-end=\"1097\">Muted Sequential Growth Raises Concerns<\/h3>\n<p data-start=\"1099\" data-end=\"1264\">Despite strong year-on-year (YoY) growth, Hexaware Technologies&#8217; weak quarter-on-quarter (QoQ) performance has led to concerns about its near-term outlook.<\/p>\n<ul data-start=\"1266\" data-end=\"1619\">\n<li data-start=\"1266\" data-end=\"1394\">The company&#8217;s constant currency revenue growth of 0.2% QoQ indicates sluggish demand, making investors cautious.<\/li>\n<li data-start=\"1395\" data-end=\"1491\">US dollar revenue declined by 0.5% QoQ, highlighting macro headwinds in key markets.<\/li>\n<li data-start=\"1492\" data-end=\"1619\">This was the first earnings report since Hexaware&#8217;s re-listing, adding pressure on the stock to deliver strong numbers.<\/li>\n<\/ul>\n<h3 data-start=\"1621\" data-end=\"1672\">Macroeconomic Challenges &amp; Market Outlook<\/h3>\n<p data-start=\"1674\" data-end=\"1930\">Hexaware Technologies acknowledged that macroeconomic conditions have turned marginally negative in recent weeks. However, the company remains optimistic about resilience in 2025, with expectations of a ramp-up in the second half of the year.<\/p>\n<ul data-start=\"1932\" data-end=\"2265\">\n<li data-start=\"1932\" data-end=\"2045\">Two of the company&#8217;s top three clients are undergoing consolidation, a process that Hexaware has won.<\/li>\n<li data-start=\"2046\" data-end=\"2152\">Major growth momentum is expected in Q3 FY25, with additional consolidation deals in progress.<\/li>\n<li data-start=\"2153\" data-end=\"2265\">If the company secures these deals, ramp-ups could extend into Q4 FY25, aiding long-term revenue growth.<\/li>\n<\/ul>\n<h3 data-start=\"2267\" data-end=\"2304\">Regional Growth Performance<\/h3>\n<p data-start=\"2306\" data-end=\"2415\">Hexaware\u2019s geographical revenue growth in CY24 was mixed, with varying performances across markets:<\/p>\n<ul data-start=\"2417\" data-end=\"2667\">\n<li data-start=\"2417\" data-end=\"2480\">America: 17.7% growth (Strongest performing region)<\/li>\n<li data-start=\"2481\" data-end=\"2525\">Asia-Pacific (APAC): 6.5% growth<\/li>\n<li data-start=\"2526\" data-end=\"2555\">Europe: 3% growth<\/li>\n<li data-start=\"2556\" data-end=\"2667\">However, European revenue in Q4 declined by 9.7%, signaling potential economic slowdowns in the region.<\/li>\n<\/ul>\n<h3 data-start=\"2669\" data-end=\"2719\">Operational Performance &amp; Workforce Data<\/h3>\n<ul data-start=\"2721\" data-end=\"2977\">\n<li data-start=\"2721\" data-end=\"2788\">Cash balance stood at \u20b91,977 crore as of December 31, 2024.<\/li>\n<li data-start=\"2789\" data-end=\"2880\">Total headcount reached 32,309, with a net addition of 4,017 employees in 2024.<\/li>\n<li data-start=\"2881\" data-end=\"2977\">IT sector voluntary attrition was at 10.8%, indicating stability in workforce retention.<\/li>\n<\/ul>\n<h3 data-start=\"2979\" data-end=\"3024\">Stock Performance &amp; Market Reaction<\/h3>\n<p data-start=\"3026\" data-end=\"3313\">Before the earnings announcement, Hexaware Technologies&#8217; stock closed at \u20b9819 on Thursday, 15.5% above its issue price of \u20b9709. However, after the muted Q4 results, the stock declined 5.7% to \u20b9771.89 and fell further by 6.9% on Friday, reflecting investor concerns.<\/p>\n<h3 data-start=\"3315\" data-end=\"3360\">Investor Takeaways &amp; Future Outlook<\/h3>\n<p data-start=\"3362\" data-end=\"3703\">Despite the near-term concerns over sequential revenue growth, Hexaware Technologies&#8217; strong YoY growth, healthy cash balance, and upcoming client ramp-ups offer long-term stability. However, investors should monitor macroeconomic conditions and deal conversions, which could influence the company&#8217;s performance in H2 FY25.<\/p>\n<p data-start=\"3705\" data-end=\"3901\" data-is-last-node=\"\" data-is-only-node=\"\">With the stock still trading above its IPO issue price, the market may be looking for stronger sequential growth catalysts before regaining confidence in the company&#8217;s near-term prospects.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IT Services Firm Reports Sluggish Sequential Growth Despite Strong Year-on-Year Performance Hexaware Technologies witnessed a sharp 6.9% decline in its share price on Friday, closing at \u20b9763.45 on the BSE, following the release of its Q4 FY24 earnings report. While the IT services company reported a 66.3% YoY jump in net profit, concerns over sluggish [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-4950","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/4950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=4950"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/4950\/revisions"}],"predecessor-version":[{"id":4952,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/4950\/revisions\/4952"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/4951"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=4950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=4950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=4950"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=4950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}