Hexaware Technologies said that its delisting will have no impact on the company’s future business prospects.

In early June, Baring Asia PE which holds a 62.4 per cent stake in Hexaware, announced its intent to delist and now it is up to the shareholders. The board had approved the delisting, pointing out that if the promoter group gets complete control, it would increase operational flexibility to support the company’s business. “No matter who our owners are it doesn’t change the way we go about our business,” R Srikrishna, CEO, Hexaware, told BusinessLine , on the sidelines of its June-ended earnings.

Hexaware reported a net profit of ₹152.4 crore, a marginal increase of 0.6 per cent when compared to the June ended quarter of 2019.

On a sequential basis, profits dipped by 12.8 per cent, as Covid-19 uncertainties caused some of its clients to pull back tech spending. In dollar terms, profits were $20.2 million — down by 7.2 per cent on a yearly basis and 13.5 per cent on a sequential basis.

“We expect to go back to delivering industry leading growth as the headwind from one of our top three accounts recedes fully. Our execution through Covid-19 has helped us improve relationships and grow market share with our customers,” said Srikrishna.

Revenues came in at ₹1,569.1 crore, a 19.9 per cent rise when compared to the year ago period when it posted revenues of ₹1,319.1 crore. On a sequential basis, revenues were up 1.7 per cent when compared to ₹1,541.7 crore posted in the March-ended quarter. Revenues in dollar terms were $208.1 million, a 10.4 per cent yearly increase and down 1.2 per cent on a sequential basis.

In spite of the global crisis created by the pandemic, Hexaware has continued to excel and delight its customers. This is reflected in the EBITDA margin improvement of 240 basis points on a sequential basis,” said Atul Nishar, Chairman, Hexaware Technologies.

Cautiously upbeat

Going forward, Hexaware expects the worst to be behind but is cautious and believes that growth will be gradual. “One of the top three accounts that has seen growth headwinds over the past three quarters, returned to growth in Q2 and we expect continued growth in this account for the foreseeable future,” said Srikrishna.

In the June-ended quarter, Hexaware won Total Contract Value (TCV) of $46 million. In the first half of 2020, it has TCV of $115 million when compared to $72 million in TCV in the first half of 2019, signalling improvement in tech spending. Among the geographies, Europe grew at 37.4 per cent on a yearly basis, Americas at 8.3 per cent, while Asia Pacific was down 13.1 per cent. Among the verticals, Healthcare & Insurance grew at 20.9 per cent and Hitech and professional services grew by 20.2 per cent.

Attrition for the quarter was 14.4 per cent and the total headcount reduced close to 1,200 as demand from a part of its BPO business was down. Hexaware’s total headcount was 18,825 as of June.