Hexaware Technologies Q4 results were declared on 7 March 2025. Due to its weak quarterly earnings, its shares plunged over 8% intraday. Although it delivered a decent year-on-year (YoY) growth, the quarterly revenue growth was sluggish, raising concerns about near-term momentum. Hexaware made its stock market debut on 19 February 2025.
Hexaware Stock Falls Post-Earnings Release
Hexaware shares dropped over 8.00% to 758.60 on NSE, later recovered slightly and closed at 4.58% at INR 781.75 per share. The fall was due to investor fears of muted sequential growth despite strong annual performance.
Revenue Performance: Strong Yearly, Weak Quarterly Growth
Hexaware Technologies Q4 results reported a 66.3% YoY growth in net profit to INR 320.70 crore from INR 192.80 crore of the same quarter in 2023. However, 7% sequential growth from INR 299.70 crore in Q3 2024.
Total revenue was INR 3,154.4 crore, up 20.6% YoY from INR 2,616.00 crore. QoQ growth was 0.6%, which is not good for the near term.
In constant currency (CC) terms, revenue growth was 0.2% sequentially and 18.8% YoY. This weak quarterly growth killed the investor sentiment despite overall strong Hexaware Technologies Q4 numbers.
CY24 At a Glance
- Revenue (CC): 13.5%
- Revenue (INR) : 15.4%
- Adj. EBITDA: 23.2%
- Margin: 17.3%
- Adj. PAT: 21.3%
- Closing Cash Balance: INR 1,977 Cr
Margin Expansion and Operational Strength
Despite weak sequential growth, Hexaware Technologies’ Q4 results showed strong profitability expansion:
- EBITDA was up 50.7% YoY to INR 514.00 crore
- EBITDA margin expanded 326 bps to 16.3%
- 30 bps QoQ margin improvement due to cost controls, PBT was up 73.8% YoY to INR 417.00 crore with a profit margin of 10.2% compared to 7.4% in the same quarter of 2023. The company maintained solid operating cash flow (OCF) conversion at over 74% of adjusted EBITDA.
Regional & Sectoral Performance: Mixed
Hexaware Technologies Q4 results showed regional and sectoral variances:
- Americas: Up 17.7% YoY
- Europe: Down 9.7% in Q4
- Asia-Pacific: Up 6.5% YoY
Among business segments, financial services grew 19.1% YoY, while manufacturing and consumer sectors declined 6.9% QoQ.
Deal Wins
- Large Secondary Mortgage Provider In The US
- Major Airline in the US
- Global supply chain Management & Logistics services company in the US
- Large Bank In Southeast Asia
- UK-based global provider of financial markets data and infrastructure
- Global leader in eDiscovery, document review, risk management and legal consulting services
Hexaware IPO Details and Stock Performance
Hexaware Technologies provides AI-enabled solutions, offering advanced platforms to help organizations adapt, innovate, and optimize in the AI-first era. It operates across six key industry segments: Financial Services, Healthcare & Insurance, Manufacturing & Consumer, Hi-Tech & Professional Services, Banking, and Travel & Transportation. Its core services—Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services—form the foundation of its offerings.
Hexaware Technologies was listed on 19 February 2025 at INR 762.55 on NSE, a 7.70% premium to its IPO price of INR 708. Although the stock was volatile, it had gained 13.43% from its IPO price before this post-earnings correction.
Final Take
While Hexaware Technologies reaffirms strong fundamentals, near-term concerns over sequential revenue growth and European contraction have unsettled investors. The company’s expanding EBITDA margins, healthy cash flows, and ongoing client deals remain long-term positives.
For investors, patience will be key, as deal ramp-ups in mid-2025 could drive a rebound in growth momentum. Until then, Hexaware’s stock may continue to experience short-term volatility, reflecting broader macroeconomic and sectoral trends.
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