**Hexaware Technologies: A Milestone Listing and Market Challenges**
Hexaware Technologies, a 33-year-old IT firm based in Mumbai, made a significant return to the public markets on February 19, 2023, after delisting in 2020. The company’s stock debut was celebrated with a lively atmosphere, contrasting with typical corporate events. This listing marked a pivotal moment for Hexaware, which has transformed over the past decade, achieving consistent double-digit revenue growth and positioning itself as a strong competitor in the IT sector.
**Market Reaction to Post-IPO Results**
Despite the initial excitement, Hexaware’s first quarterly results post-IPO, released on March 7, 2023, did not meet investor expectations. The company reported an 18.5% year-on-year revenue growth, with EBITDA increasing by 48% and profit after tax (PAT) rising by 65% compared to Q4 2023. However, the stock price fell by 6.75% to an intra-day low of ₹764 on the NSE, closing at ₹736 on the BSE on March 19, down 3.09% from the previous close.
CEO R. Srikrishna, affectionately known as Keech, expressed confidence in the company’s performance, stating, “Our numbers were very good. I know the market didn’t like it, but it’s going to take some time to educate it on our cyclicality.” He acknowledged that while the revenue growth in constant currency terms was only 0.2% sequentially, the company remains resilient despite challenging macroeconomic conditions.
**Resilience Amid Market Scrutiny**
Hexaware’s management highlighted that the recent downturn in the market was influenced by inward-looking US policies, but Keech remains optimistic about the company’s future. He noted that Hexaware does not operate in tariff-impacted sectors, which could help mitigate potential delays in customer decisions due to changing consumer sentiment.
Key facts about Hexaware Technologies:
– 73.4% of revenue comes from the US market
– 22% from Europe
– Over 125 accounts generating $1-5 million in revenue
– One client contributing $100 million
**Conclusion**
As Hexaware navigates the complexities of the market, will it continue to demonstrate resilience and growth in the coming years?
**FAQ: What were Hexaware Technologies’ key financial results post-IPO?**
Hexaware reported an 18.5% year-on-year revenue growth, with EBITDA up 48% and PAT increasing by 65% compared to Q4 2023. However, sequential revenue growth in constant currency terms was only 0.2%, raising concerns about near-term demand.
