HEXAWARE TECHNOLOGIES Announces Quarterly Results (2QFY21); Net Profit Down 11.6%

Fri, 23 Oct

HEXAWARE TECHNOLOGIES has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

HEXAWARE TECHNOLOGIES Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	14,813	15,620	15,858	1.5%	7.1%
Other income	Rs m	6	32	35	9.5%	464.8%
Turnover	Rs m	14,820	15,652	15,893	1.5%	7.2%
Expenses	Rs m	12,238	12,978	13,183	1.6%	7.7%
Gross profit	Rs m	2,575	2,642	2,676	1.3%	3.9%
Depreciation	Rs m	324	637	575	-9.8%	77.2%
Interest	Rs m	34	154	133	-13.8%	291.8%
Profit before tax	Rs m	2,223	1,883	2,004	6.4%	-9.9%
Tax	Rs m	387	361	381	5.7%	-1.5%
Profit after tax	Rs m	1,836	1,522	1,623	6.6%	-11.6%
Gross profit margin	%	17.4	16.9	16.9
Effective tax rate	%	17.4	19.1	19.0
Net profit margin	%	12.4	9.7	10.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 7.1% on a year-on-year (YoY) basis. The expenses were up by 7.7% YoY during the same period.
• The company's operating profit increased by 3.9% YoY during the quarter. Consequently, operating profit margins remained same and stood at 16.9% in 2QFY21.
• Depreciation charges increased by 77.2% and finance costs increased by 291.8% YoY, respectively.
• Other income increased by 464.8% YoY during the quarter.
• Net profit for the quarter declined by 11.6% YoY. Net profit margins during the quarter declined from 12.4% in 2QFY20 to 10.2% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 1.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 1.6% QoQ during the same period.
• The company's operating profit increased by 1.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 16.9% in 2QFY21 as against 16.9% in 1QFY20.
• Net profit for the quarter increased by 6.6% QoQ, while net profit margins increased from 9.7% in 1QFY20 to 10.2% in 2QFY21.

To see how HEXAWARE TECHNOLOGIES has performed over the last eight quarters,please visit here.

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HEXAWARE TECHNOLOGIES Share Price Performance

Over the last one year, HEXAWARE TECHNOLOGIES share price has moved up from Rs 366.4 to Rs 470.2, registering a Gain of Rs 103.8 or around 28.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 21,757.7 (down 0.2%). Over the last one year it has moved up from 14,535.0 to 21,757.7, a gain of 7,223 points (up 49.7%).

Overall, the S&P BSE SENSEX is up 4.5% over the year.

Current Valuations

At the current price of Rs 470.2, the price to earnings (P/E) ratio of HEXAWARE TECHNOLOGIES stands at 21.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 5.9 times.