The company declared payment of interim dividend at Re 1 per share (50 percent) on equity shares.
Shares of Hexaware Technologies slipped 6.5 percent in the opening trade on Friday despite better March quarter (Q1CY18) numbers.
The company posted a 17.9 percent rise in consolidated net profit at Rs 134.3 crore for the quarter ended March 31, 2018. This is against a net profit of Rs 113.9 crore in the same period a year ago, Hexaware said in a statement.
Its revenue rose 9.2 percent to Rs 1,049 crore from Rs 960.5 crore in the same period a year ago, as per Indian Accounting Standards. Hexaware follows the January-December fiscal.
In dollar terms, Hexaware saw its net profit increasing 20.3 percent to USD 20.7 million, while revenue was higher by 12.1 percent to USD 162.2 million in the March 2018 quarter.
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The company added three new clients in the first quarter of 2018 with total contract value of USD 28 million. It has declared an interim dividend of Re 1 for the said quarter.
Its cash and cash equivalents stood at USD 94.03 million or Rs 613 crore at the end of the reported quarter.
The company declared payment of interim dividend at Re 1 per share (50 percent) on equity shares.
Morgan Stanley maintained underweight rating on Hexaware with a target of Rs 325 per share
According to brokerage, this is another robust quarter of revenue growth, while margin softer-than-expected. It believes that stock is already more than pricing in potential upside risks.
Motilal Oswal has downgraded the stock to sell and reduced the target price to Rs 390 from Rs 451 per share.
According to the firm, the revenue growth of 3.3% QoQ was in line with our expectation, while EBITDA margin shrunk 40 bps to 15.5%, which below the estimate of 16%.
The company's CMP discounts forward earnings by 20x and CY17-19 USD revenue/earnings CAGR stands at 13/12.6%, it added.
At 09:22 hrs Hexaware Technologies was quoting at Rs 423.65, down Rs 27.60, or 6.12 percent on the BSE.
With inputs from PTI