The company’s revenue growth in constant currency terms was 1.3%, which was lower than the estimates of 2.5%.
There was also a jump in other expenses, which stood at ₹142 crore, compared to ₹8.7 crore in the base quarter. There were specific provisions for customers worth ₹78.2 crore, enterprise resource planning (ERP) transformation cost of ₹12 crore, acquisition related costs of ₹12.8 crore and impairment of customer contract, associated with an earlier acquisition worth ₹39.4 crore, which formed part of the other expenses.
This rise in other expenses dented the company’s operating performance during the quarter. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined to ₹404 crore from ₹431 crore last year, and from ₹527.8 crore in the March quarter, while reported EBITDA margins stood at 12.4% from 16.5% in March and 14.7% last year.
According to the company, adjusted for the one-off expenses, the EBITDA margin would be at 18.1% from 17% in the previous quarter.
Hexaware has continued to maintain its EBITDA margin guidance to be between 17.1% to 17.4% for the full year.
On the deals front, Hexaware said that all large consolidation deals are still in the works, while small and mid-sized deals are progression. However, decision making has slowed down and as a result, the expectations for the ret of the year are lower.
Shares of Hexaware Technologies are trading 7% lower on Friday at ₹767.55. The stock had ended at the lows of the day on Thursday, ahead of the earnings announcement.
First Published:Â Jul 25, 2025 7:13 AM IST
