Hexaware Technologies Q4 FY25 results: net profit ₹327.10 crore

How did Hexaware Technologies perform in Q4 FY25?

Hexaware Technologies reported consolidated revenue of ₹3,208 crore for Q4 FY25, compared with ₹3,154 crore in Q3 FY25. EBITDA rose to ₹527.80 crore from ₹490.40 crore, while the EBITDA margin increased from 15.5% to 16.5%. Profit before tax was ₹436.30 crore, up from ₹417 crore, and net profit was ₹327.10 crore, up from ₹320.70 crore.

Basic EPS was ₹5.38 in Q4 FY25, compared with ₹5.25 in Q3 FY25. The company reported other income of ₹4.40 crore, total expenses of ₹2,776 crore, tax of ₹109.20 crore and no exceptional item. On the standalone basis, revenue was ₹1,764.1 crore and profit after tax was ₹239.2 crore.

Management said the quarter included a little over 100 bps of revenue headwind from planned movement of work offshore for two clients and a delayed programme. Management said planned offshore movement helped margins, with EBITDA rising to 16.7% on the earnings-call presentation and EPS up 16.7% year on year.

Which businesses drove the quarter?

Travel and Transportation reported revenue of ₹276.9 crore and EBIT of ₹126.3 crore, with an EBIT margin of 45.6%. Banking reported revenue of ₹250.7 crore and EBIT of ₹103.0 crore, with an EBIT margin of 41.1%.

Financial Services reported revenue of ₹978.6 crore and EBIT of ₹325.5 crore, with an EBIT margin of 33.3%. Healthcare & Insurance reported revenue of ₹667.2 crore and EBIT of ₹261.4 crore, with an EBIT margin of 39.2%.

High Tech and Professional Services reported revenue of ₹556.5 crore and EBIT of ₹226.4 crore, with an EBIT margin of 40.7%. Manufacturing and Consumer reported revenue of ₹478.0 crore and EBIT of ₹191.7 crore, with an EBIT margin of 40.1%. Year-ago segment revenue and EBIT figures were not provided.

What else did the company announce?

The company filed an investor presentation with the exchange around the result under investor communications. The available same-day board filings did not mention a dividend, fund raise or appointment, and the earnings-call transcript filing stated that it was submitted under Regulation 30 of the SEBI listing requirements.

What did Hexaware Technologies' management say?

Management maintained FY25 EBITDA margin guidance of 17.1 to 17.4% and said utilisation would remain between 82% and 83% on a full-year basis. Management guided to an effective tax rate of approximately 26% for FY25, compared with 25% in FY24, a DSO target of 70-72 days by year-end against 75 days currently, and an OCF/EBITDA target of 70% on an LTM basis against 67% currently. The company retained its policy of not guiding on revenue or TCV.

CEO R Srikrishna said the company expected to hire 1,800 to 2,000 IT people in Q2 to serve the Q2 ramp and anticipate a Q3 ramp. He said RapidX had shy of 40 clients in its pipeline and that management expected accelerated growth in Q3 and sequential growth in Q4, contrary to the usual seasonal trend. Management also expected the banking vertical to turn with double-digit QoQ growth from Q2.

Management identified the MNC vertical as the largest macro impact and expected it to remain a drag through FY25. It also flagged possible further cost cuts at the second GSE client before a consolidation RFI decision, delayed SOW renewal paperwork extending into Q2, and an effective tax rate stepping up to approximately 26% as SEZ units exited the tax-holiday period. Management said a USD 1 bn parent-level bond matures in CY26 and that it had “good options on the table,” without providing specifics.

How did Hexaware Technologies shares react?

After the filing, Hexaware Technologies shares were down 2.0% after 5 minutes, 15 minutes and 30 minutes. On the reaction day, the stock rose 3.8% from its pre-results close, against a 0.5% median move for the industry. The stock’s reaction-day move was 3.4 percentage points above the industry median.

By the next day's close, the stock was up 0.4% from its pre-results close, while the industry median was down 1.0%; the relative move was 1.5 percentage points. By the fifth day's close, the stock was down 2.0% from the pre-results close, compared with a 1.2% decline for the industry, a relative move of negative 0.8 percentage points. At the one-month mark, the stock was up 15.9%.

The Nifty Midcap 150 rose 0.2% on the reaction day, fell 0.5% by the next day's close and was down 0.1% by the fifth day's close. On the earlier results date of 7 March 2025, the stock’s reaction-day move was negative 4.0%.

How did other Computers - Software & Consulting companies do?

A total of 60 Computers - Software & Consulting companies were compared for the quarter. Their median revenue growth was 9.7%, and 40 of the 60 companies reported higher profit. The available peer data did not provide counts for peers_growing_slower_than_company or peers_growing_faster_than_company.