Shares of Hexaware Technologies witnessed a sharp decline of 7.40%, closing at Rs 759.10 on Friday. This significant drop pulled the company’s total market capitalization below Rs 47,000 crore, raising investor concerns over its near-term performance.

Hexaware Technologies Q3 Results: Key Takeaways

The recent listing of Hexaware Technologies Ltd. came under pressure after the company announced its Q3 FY24 earnings, which showcased a mix of positives and challenges. While the financial results indicated strong year-on-year (YoY) growth, muted sequential performance and macroeconomic uncertainties led to a negative market reaction.

• Net Profit Surge: The company reported an impressive 66.3% YoY increase in net profit, reaching Rs 320.7 crore compared to Rs 192.8 crore in the same quarter last year.
• Revenue Growth: Total revenue grew 20.6% YoY to Rs 3,154 crore. However, the sequential growth in constant currency terms was limited to just 0.2%, signaling concerns over demand.
• Ebitda Margin Expansion: Hexaware’s Ebitda margin saw a slight increase of 30 basis points (bps) to 16.3% from the previous quarter.

Stock Performance and Market Reaction

Before the earnings announcement, Hexaware’s stock had settled at Rs 819.90 on Thursday. The recent dip marks an 11% decline from its 52-week high of Rs 850, recorded just two weeks ago. Despite the correction, the stock remains 15% above its IPO price of Rs 708.

Impact of Macro Trends and Future Outlook

Hexaware Technologies went public on February 19, 2025, raising Rs 8,750 crore through its IPO. Following the listing, the stock surged nearly 20%, reaching Rs 850, before facing recent selling pressure.

The company’s management acknowledged macro headwinds, which have turned marginally negative in the past few weeks. However, Hexaware remains optimistic about its 2025 outlook, expecting resilience amid modest macroeconomic shifts. Notably, two of its top three clients are undergoing business consolidation, which Hexaware has secured. The firm anticipates significant growth from these consolidations, particularly in the second and third quarters of 2025.

Conclusion:

While Hexaware Technologies' Q3 performance showcased robust YoY growth, weaker sequential momentum and macroeconomic concerns triggered a sharp stock correction. Investors will closely monitor the company's execution of its growth strategies and the anticipated business ramp-up in the coming quarters.

Stay tuned for further updates on Hexaware Technologies and market trends!