Hexaware's Revenue Up 12% At $371.5 Mn

Q1CY25 EBITDA Expansion of 117 bps YoY

R. Srikrishna, CEO

FinTech BizNews Service

Mumbai, April 28, 2025: Hexaware Technologies (NSE: HEXT), a leading global provider of IT solutions and services, today announced financial results for the first quarter of calendar year 2025 ended March 31, 2025.

Financial Summary and Highlights

Revenue:

• Q1CY25: USD 371.5 Mn | INR 32,079 Mn
  • USD: (0.2%) QoQ and +12.4% YoY | INR: +1.7% QoQ and +16.7% YoY
  • Constant Currency: (0.2%) QoQ and +12.7% YoY

Profitability:

• Reported EBITDA:
  • Q1CY25: 16.7% | +2.3% QoQ & +20.8% YoY in absolute terms
  • +41 bps QoQ & +117 bps YoY in % terms
• Basic EPS:
  • Q1CY25: INR 5.38 | +2.5% QoQ & +16.7% YoY

Key Client Metrics:

• 3 customers >$75Mn (1 customer in the $100 Mn+ category)
• NPS Score of 67; 27 points higher than the industry median
• Top 5 customers revenue concentration: 25.7% in LTM Q1CY25

Key People Metrics:

• Closing Headcount: 31,564, LTM net headcount addition of 1,429
• Voluntary Attrition for IT(1): 11.2%
• Q1CY25 Utilization Rate for IT(2): 82.1%

Other Key Metrics:

• DSO (Billed + Unbilled) at 75 in Q1CY25, of which Billed is 39
• LTM Q1CY25 Adjusted Cash Conversion % at 61.9%
• Strong Cash and Cash Equivalents position as of 31st March 2025(3) INR 19,087 Mn

Leadership Speak

“We continued to execute well on the basics that power our growth - win market share through delivery excellence and invest in creating differentiated capabilities, talent, and platforms. The strength of our deals wins positions us strongly for a year of solid growth “ R. Srikrishna, CEO

“We are pleased to report 12.4% YoY revenue growth, demonstrating our resilience. Despite the economic uncertainty, we have not only sustained our growth trajectory but also expanded our margins by 117 basis points YoY and 41 bps QoQ. This achievement underscores our operational excellence and our ability to continue delivering in challenging environment too “ Vikash Jain, CFO

Notes: (1) Voluntary attrition rate for the IT service line is calculated as the total number of IT business professionals and support function professionals who left the company voluntarily during a period, divided by the average number of IT business professionals and support function professionals during the period, computed on a trailing twelve-month basis. (2) Utilization rate for IT is calculated as the total hours IT business professionals spend on customer-billed assignments, divided by the total available base hours. IT business professionals designated as Mavericks (campus hires) are included in the utilization computation after the completion of an initial training period of up to four months. (3) Includes restricted cash balance

Key Wins

• Modernizing the Grants Management System for an international financial institution providing financial and technical assistance to developing countries in education
• Finance and HR platform transformation for large financial institution based out of Europe
• Application modernization and transformation journey across multiple business lines for large global bank
• Developing a new settlement platform to manage transactions more effectively for large travel player providing data analytics and settlement services
• Infrastructure, application & data separation consulting and implementation program and migration of applications / workloads from global data center to cloud for a leading American global multinational law firm
• Program to eliminate legacy applications to achieve simplification and reduce legacy debt using a low code platform for US based health and technology company
• Building Gen AI based platforms and apps for a large legal advisory firm
• Broad IT services for one of the largest pet insurance company