Hexaware Technologies Ltd. is a global leader of IT, BPO and consulting services. They serve customers in Banking, Financial Services, Capital Markets, Healthcare, Insurance, Manufacturing, Retail, Education, Telecom, Professional services (Tax, Audit, Accounting and Legal), Travel, Transportation and Logistics. Hexaware has been the fastest organically growing IT services company.

1. Jainam Share Consultant Pvt Ltd Sector : IT Consulting & Software
VandanaPareek- Assistant Research Analyst (vandana.pareek@jainam.biz); 0261-6725518
IT Consulting & SoftwareResult Update |
Q4CY18 | 01 Feb 2019
Investors are advised to refer through important disclosures made at the last page of the
Research Report.
Jainam Share Consultant research is available on www.jainam.in

2. Jainam Share Consultant Pvt Ltd Sector : IT Consulting & Software
Quarter Update
Q4CY18
Exchange: BSE BSE Code: 533179 Current Market Price: 582.25 Date: 29-Jan-19
Latest Date 31-Jan-19
Latest Price (Rs) 342.75
52 Week High (Rs) 557.40
52 Week Low (Rs) 294.80
Face Value(Rs) 2.00
Industry PE 20.50
TTM PE 17.48
TTM Period 2018-12
Price/BV(x) 4.26
EV/TTM EBIDTA(x) 12.22
EV/TTM Sales(x) 2.08
Dividend Yield% 1.17
MCap/TTM Sales(x) 2.19
Market Cap (Rs in Cr. ) 10199.25
EV (Rs) 9669.49
Latest no. of shares (in Cr.) 29.76
Hexaware Technologies Ltd.
 Revenue for the quarter was up by 24.6%
Y-o-Y i.e. Rs 1252.42 crore, while in dollar
terms it was up by 12.80% Y-o-Y at $17.61
crore and 14.20% Y-o-Y in Cross currency
terms .
 In Q-o-Q terms growth in revenue term
was of 3.00% and 3.40% in Cross currency
terms.
 Revenue for CY 2018 in dollar term was
$ 67.77 crore and it up by 11.60% Y-o-Y
and in Rupee term it was Rs. 4647.80 crore
so it was up by 17.40% Y-o-Y.
 Interim dividend of Rs. 2.50 for Q42018
which means total dividend payout for
CY2018 is Rs. 8.50.
 EBIT margin was 14.00% compared to
15.40% last quarter, decline of 140bps
Q-o-Q due to wage hike and calendar
seasonality ( furloughs).
 PAT for Q4 was Rs. 123.44 crore compared
to Rs. 172.14 crore in Q3 of CY2018 so a
decline of 28.29% Q-o-Q and was up by
2.00% on Y-o-Y basis due to high forex
loss.
 Hexaware Cash & Cash Equivalent at the
end of December 2018 was $ 11.95 crore
in dollar term and Rs. 834 crore in rupee
terms.

3. Jainam Share Consultant Pvt Ltd Sector : IT Consulting & Software
Result Highlights
 Management 2019 Guidance : Revenue growth guidance has been increased for next
year as compared to CY18 due to new deal wins and ramping up of existing deals in next year.
Management expect revenue growth to be 12-14 percent in 2019 with majority growth
happening in second half of the calendar year aided by deal ramp ups in BPO vertical. On the
back of strong booking from year 2018 and ongoing strength in client mining they are
expecting to deliver industry leading organic growth in 2019. Hexaware expect stable margin
in CY19 as they commented that there cross currency EBITDA growth will in line with CY19
cross currency revenue growth. Dividend will be in line with CY18, subject to M&A activity.
 Deal Wins : This quarter saw highest ever deal wins i.e. there first $ 100 mn deal and new
logo deal win. CY18 seen improvement in deal in win with largest new logo and existing client
deal win for the company. 5 new clients signed in Q4 2018 with total contract value of
US$ 11.60 crore and 15 new clients signed in CY2018 with total contract value of US$ 21 crore.
Deal wins from new customer accounted total contract value of US$ 11.6 crore in Q4 2018 so
the total contract value for CY2018 accounted US$ 21 crore.
 Segment-wise performance :
 Geography Wise : America which contribute 76.90% towards revenue grew by
2.30% on Q-o-Q basis and 2.80% on Y-o-Y basis. Growth from Europe based business
was low on Q-o-Q basis of 0.60% and 4.90% Y-o-Y. Growth during the quarter was led
APAC which contribute 10.10% of total revenue with growth of 11.80% Q-o-Q and
2.80% Y-o-Y.
 Vertical Basis : Manufacturing and consumer grew by 5.00% on Q-o-Q basis and
5.40% Y-o-Y, professional services which contribute 13.80% towards revenue grew by
6.8% Q-o-Q and 4.6% Y-o-Y. Travel and transportation was soft during the quarter as
it down 3.00% Q-o-Q and 1.8% Y-o-Y.
 Industry Wise : IMS was the growth driver during the quarter as due to deal ramp up
it was grown by 22.5% Q-o-Q and 14.00% Y-o-Y. Other services was flat in numbers.
View
 We recommend our Investors to “BUY" the stock with potential upside of 39% with Horizon of
3 years.

4. Jainam Share Consultant Pvt Ltd Sector : IT Consulting & Software
Financial Information
Balance Sheet
Particulars Dec -2017 Dec-2018
Assets
Non-current assets
Property, plant and equipment 358.03 382.78
Capital work in progress 256.31 224.44
Goodwill 165.63 180.91
Other intangible assets 17.71 10.46
Financial assets 42.36 41.19
Other Assets 251.77 306.75
Current Assets
Financial Assets 1385.72 1923.36
Other Assets 67.78 63.57
Total Assets 2545.31 3133.46
Equity & Liabilities
Equity 2007.27 2391.86
Non current liabilities
Financial Liabilities 3.11 7.56
Provisions 17.93 23.04
Current Liabilities
Financial Liabilities 380.77 521.46
Other Liabilities 58.97 101.43
Provisions 70.73 68.53
Current Tax Liabilities 6.53 19.58
Total Equity & Liabilities 2545.31 3133.46

5. Jainam Share Consultant Pvt Ltd Sector : IT Consulting & Software
Profit and Loss ( For year ended)
Particulars Dec -2017 Dec-2018 Var %
Income
Revenue from Operations 3942.01 4647.76 17.90%
Exchange rate difference 44.96 47.14 4.85%
Other Income 3.58 10.55 194.47%
Total Income 3990.55 4705.45 17.91%
Expenditure
Software & Development Expense 739.19 1025.04 38.67%
Employee Benefit Expense 2168.65 2479.95 14.35%
Operations & Other Expenses 379.00 408.95 7.90%
Interest - Others 0.12 0.04 -64.70%
Depreciation & Amortization Expense 63.28 65.06 2.81%
Total Expenditure 3350.24 3979.04 18.77%
Profit Before tax and Share in profit of
Associate
640.31 726.42 13.45%
Share in profit of Associate 0.27 0.17 -38.52%
Profit before tax 640.58 726.58 13.43%
Tax Expenses 141.05 143.12 1.46%
Profit after tax 499.53 583.46 16.80%

6. Jainam Share Consultant Pvt Ltd Sector : IT Consulting & Software
Profit and Loss ( For Quarter)
Particulars
Quarter
Dec -2017
Quarter Dec
-2018
Var %
Income 1004.83 1252.42 25%
Revenue from Operations 12.76 -24.79 -294%
Exchange rate difference 0.38 3 680%
Other Income 1017.97 1230.63 21%
Total Income
Expenditure 191.6 291.32 52%
Software & Development Expense 559.2 656.35 17%
Employee Benefit Expense 94.2 113.1 20%
Operations & Other Expenses 0.02 0.02 9%
Interest - Others 15.87 15.82 0%
Depreciation & Amortization Expense 860.89 1076.61 25%
Total Expenditure
Profit Before tax and Share in profit of
Associate 157.08 0.01 -2%
Share in profit of Associate 157.08 154.03 333%
Profit before tax 36.12 30.58 -2%
Tax Expenses 120.97 123.44 -15%
Profit after tax 499.53 583.46 2%

7. Jainam Share Consultant Pvt Ltd Sector : IT Consulting & Software
Source
 Company Conference Call
 Ace Equity
 Hexaware Fact-sheet
 Hexaware Technologies Ltd. - Website
Name Designation Email Id
Tejas Jariwala Research Head tejas.jariwala@jainam.in
Jimit Zaveri Sr. Research Analyst jimit.zaveri@jainam.biz
Vaishali Patel Sr. Research Analyst vaishalip.patel@jainam.biz
Karan Agarwal Assistant Research Analyst karan.agarwal@jainam.biz
Vandana Pareek Assistant Research Analyst vandana.pareek@jainam.biz
Riva Patel Assistant Research Analyst riva.patel@jainam.biz
Radhika Modi Assistant Research Analyst radhika.modi@jainam.biz
Shahrukh Nalbandh Sr. Research Executive shahrukh.nalbandh@jainam.biz
Drashti Patel Jr. Research Executive drashti.patel@jainam.biz
Dhruvish Bakshi Jr. Research Executive dhruvish.bakshi@jainam.biz
Research Analyst Details:

8. Jainam Share Consultant Pvt Ltd Sector : IT Consulting & Software
Disclaimer
Research Analyst Details
Name: Vandana Pareek Email Id: vandana.pareek@jainam.biz Ph: +91 0261-6725518
Analyst ownership of the stock: No
Details of Associates: Not Applicable
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