Hexaware Technologies shares dive 7% after muted Q3 results

Shares of recently listed Hexaware Technologies Ltd dropped during the trading session on Friday after the company announced a mixed set of numbers in the December 2024 quarter, along with macro headwinds flagged by the company management.

Hexaware Technologies reported a 66.3 per cent year-on-year (YoY) rise in net profit to Rs 320.7 crore for the December quarter of 2024, compared to Rs 192.8 crore a year earlier. Revenue grew 20.6 per cent YoY to Rs 3,154 crore in the quarter. However, sequential revenue growth in constant currency terms was just 0.2 per cent YoY, raising concerns over near-term demand.

Following the Q3 results, shares of Hexaware Technologies tanked more than 7.40 per cent to Rs 759.10 on Friday, with a total market capitalization slipping below Rs 47,000 crore. The stock had settled at Rs 819.90 on Thursday. The stock has tumbled nearly 11 per cent from its 52-week high at Rs 850, hit two weeks ago.

Hexaware's Ebitda margin expanded by 30 bps to 16.3 per cent from the previous quarter. The company ended the 2024 calendar year with a constant currency revenue growth of 13.5 per cent. This was the first quarterly earnings report released by the company after it re-listed on the bourses.

Shares of Hexware Technologies were listed on February 19, 2025, when the company raised total of Rs 8,750 crore via IPO, with issue price of Rs 708 apiece. The stock is still 15 per cent above its IPO price. The stock gained nearly 20 per cent from its IPO price to Rs 850, before witnessing a correction.

The company management said macros have trended marginally negative in the last few weeks. It expects its performance in 2025 to be resilient to modest macro changes. It added that two of its top three customers are going through consolidation, which it has won. The firm expects some ramp up of this process in the second quarter and the majority in the third quarter.