Hexaware Delivers Strong Q1CY25 Revenue at $371.5 Mn Up 12.4% YoY

Q1CY25 EBITDA Expansion of 117 bps YoY

Q1CY25 EPS at INR 5.38 Increase of 16.7% YoY

LONDON, April 28, 2025 /PRNewswire/ -- 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 31^st 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

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

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

About Hexaware

We are a global digital and technology services company with artificial intelligence ("AI") at its core. We leverage technology to deliver innovative solutions that help our customers in their digital transformation journey and subsequent operations. We embed AI into every aspect of our solutions and have created a suite of platforms and tools that allow our customers to adapt, innovate, and optimize in this AI-first era. We serve a diverse range of customers, including 31 Fortune 500 organizations. With a team of 31,564 employees in 28 countries, our presence is spread across major countries, nationalities, languages, time zones, and regulatory zones. For more information, please visit https://hexaware.com/ 

Forward-looking Statements

Certain statements in this press release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The Company may, from time to time, make additional written and oral forward statements. We do not undertake to update any forward statements that may be made from time to time by us or on our behalf unless required under the law.

Disclaimer

Use of Non-GAAP Financials

Hexaware has included certain non-GAAP financial measures in this presentation to supplement Hexaware's consolidated financial statements presented on a GAAP basis. These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Hexaware's results as reported under GAAP.

The non-GAAP financial information that we provide also may differ from the non-GAAP information provided by other companies. We compensate for the limitations on our use of these non-GAAP financial measures by relying primarily on our GAAP financial statements and using non-GAAP financial measures only supplementally. We have provided reconciliation of non-GAAP earnings to the most directly comparable GAAP earnings, and we encourage investors to review those reconciliations carefully.

We believe that providing these non-GAAP financial measures in addition to the related GAAP measures provides investors with greater transparency. We further believe that providing this information better enables investors to understand Hexaware's operating performance and financial condition.

Rounding off

Certain amounts and percentage figures included in this presentation have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures preceding them.

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