Profit expectations are kept behind, mostly due to the loss of customer contracts associated with other costs, such as editing-related costs, and a customer agreement associated with previous acquisition.
Hexawar issued mute income guidance for the next year. The company follows the fiscal year from January to December.
Unlike its mid-level colleagues, the income of Hexaver’s Q2 was proportional to Rs 3,260 crore, which increased by 11.1% and 1.6% continuously in terms of continuous currency over the year, lagging behind street estimates. In continuous currency terms, the revenue was 2 382.1 million, which increased 1.3% and 7.5% compared to a year ago.
During the quarter, reduction in production and consumer segment and flat growth in financial services affected income growth.
Hexaware CEO R. Sri Krishnan told ET, “Our growth expectations for the year are a bit lower than the start of Q2.”
He added, “With so many new promises of tar -scar tariff against multiple countries … it is on the negative side. Some trade deals with some smaller countries have been announced and there may be many of them in the next few weeks.”
Hexaware stock was sharply declining over the announcement of earnings. They reduced the benchmark BSE Sensex by 0.88%, Rs 738.25.
Hexawar Management said that the macro atmosphere is softening and cyclic, and all of them are going on in large consolidation deals.
“Small and medium -sized deals are well progressing. However, the decision slows down. As a result, the expectations for the rest of the year,” the company said.
Geographically, Europe saw both year and gradually growth, but the Asia Pacific saw a decline of one year ago, and marginal growth from the March quarter.
“There will be one or two quarters that will have blips (in the Asia Pacific) but usually long -term, it will be positive,” Sri Krishna said. “In India, we edited here to serve GCC (Global Capacity Center) customers. In the Middle East, we keep a strong pipeline and expect to convert to Q3 and increase revenue in Q4.”
This month, Hexawar got Bengaluru-based SMC $ 120 million (about Rs 1,038 crore) in the all-cash deal, which is expected to increase revenue growth in the next two quarters.
While the adjusted margin has gone 18.1%, which was 17.1%in the March quarter, the full year margin guidance was 17.1–17.4%.
The company expects that despite the one-DU Diggoth in Q1, which will affect financial services for the entire year.
“On manufacturing, customers are waiting for clarity on costs. Once it happens, it takes a few weeks to translate what it means to them,” Sri Krishna said.
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