RATING

RECOMMENDATION

Buy

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Buy

Business Type

Emerging Leader

RATING

RECOMMENDATION

Buy

Business Type

Emerging Leader

  • Hexaware Growth

Get detailed information about the Hexaware Technologies Share Price. In this research report, you will get to know about Hexaware Peers data. In addition, get the complete details about the Net Profit Growth, Revenue Growth and Book Value Growth.

Hexaware Revenue Growth

Growth in %

  • 15.05%

    1 Year

  • 15.47%

    3 Year

  • 15.18%

    5 Year

The company's revenue has grown from Rs. 6,297 Cr in FY20 to Rs. 7,245 Cr in FY'21. One of the key reasons for it was booking from new clients worth $380 million in 2021. Additionally, the focus has been on adding and growing clients with a meaningful revenue base, leading to increased revenue per client. In 2021, the Company had added 4 clients over the $10 - $25 million category and 2 Clients in the $5 - $10 million categories.

Except for global travel and transportation, all business verticals had secular revenue growth, with the most robust growth from the Banking, Manufacturing & consumer, and Healthcare, sectors of 47%, 33%, 16% year-on-year (y-o-y) growth, respectively.

Hexaware Net Profit Growth(PAT)

Growth in %

  • 20.49%

    1 Year

  • 8.67%

    3 Year

  • 12.31%

    5 Year

The company's net income has increased by 20% in FY21 compared to FY20. The firm's revenue per-unit expense for FY21 stands at 1.115, which is higher than FY20, which was 1.109. The company has generated around 489 new ideas, which helped them to save $ 35 million in expenses for FY21. The overall costs have seen a rise of 14% in FY21 when compared to FY20, and this shows the operational efficiency of the company when compared to the rise in profit and revenue.

Hexaware EPS Growth

Growth in %

  • 19.69%

    1 Year

  • 8.15%

    3 Year

  • 12.35%

    5 Year

The company's EPS grew at a rate of 20% in 2021 compared to 2020, driven by a 20% y-o-y growth in net income from Rs 621 Cr in FY20 to Rs 748 Cr in FY21. The total outstanding shares for the company grew by 12,82,804, which were issued against the exercise of ESOP. 

  • Hexaware Book Value Growth

Growth in %

  • 17.04%

    1 Year

  • 16.70%

    2 Year

  • 16.88%

    3 Year

The company's book value has increased at a growth rate of 16.5%, primarily because of increased retained earnings by 24% in FY21 compared to FY20 and increased reserves and surplus by 12% in FY21 compared to led by higher net income for FY21. Also, the company has transferred INR 50 Cr. (net) to SEZ re-investment reserve. To be noted that the company had added 12,82,804 shares in the overall outstanding share balance, which was issued to the employees under the employee stock option scheme.

Hexaware EBITDA Growth

Growth in %

  • 10.94%

    1 Year

  • 14.87%

    3 Year

  • 14.27%

    5 Year

EBITDA grew at a rate of 10%, which is slower when compared to previous years because of the increased employee benefits expense from Rs 3,695 Cr to Rs 4,268 Cr in FY21, which was merely due to an increase in salary allowance and employee stock options compensation cost. Also, an increased operating expense from Rs 1,520 Cr in FY20 to Rs 1,777 Cr in FY21 was driven by increased Repairs and maintenance prices as well as Sub contracting and other service charges by 34% and 24%, respectively.

Hexaware Operating Profit Growth

Growth in %

  • 14.90%

    1 Year

  • 10.33%

    3 Year

  • 11.72%

    5 Year

The EBIT rose to Rs 976 Cr in FY21 from Rs 849 Cr in FY20, showcasing an increase of 15%. An increase in operating margin is due to reduced depreciation and amortization expense from Rs 232 cr in FY20 to Rs 224 Cr in F21, which is a fall of 4% year on year. This is also due to disposal of plant & machinery, furniture & fixtures and office equipment by Rs 30 cr, Rs 7 cr, and Rs 3 cr respectively. Also, an increased EBITDA of 11% in FY21 has accelerated the growth of EBIT after a lower depreciation and amortization expense.

Hexaware Asset Growth

Growth in %

  • 10.44%

    1 Year

  • 21.89%

    3 Year

  • 19.68%

    5 Year

Total assets have increased from Rs 5,137 Cr. to Rs 5,673 Cr. This is primarily due to increased trade receivables and cash and other short-term investments  from Rs 1,072 Cr in FY20 to Rs 1,367 Cr in FY21  and Rs 1,026 Cr in FY20 to Rs 1,324 Cr in FY21, respectively.

Hexaware Cash Flow from Operations

Growth in %

  • -31.86%

    1 Year

  • 21.32%

    3 Year

  • 15.68%

    5 Year

Cash flow from operations showed a significant fall. It was Rs 1,438 Cr in FY20 and fell to Rs 980 Cr. in FY21. The fall primarily accounts because of the addition in trade receivables and other current assets by Rs 3,676 Cr in current assets.

  • Hexaware Solvency Ratios

A solvency ratio is a tool for determining a company's capacity to meet long-term financial obligations.

Hexaware D/E Ratio

The company has paid off its debt of Rs 146 Cr, which was taken for the acquisition of Mobiquity in 2019, and its lease liability of Rs 92 Cr in FY21. At the same time, the short-term lease liabilities have seen a rise of Rs 4.5 Cr yearly as it is the scheduled payment cycle.

Hexaware Current Ratio

The company's current ratio has increased from 1.6 to 1.9, a growth of 18% in FY21 over FY20. The change in cash & other short-term investments from Rs 1,026 Cr in FY20 to Rs 1,324 Cr in FY21 is because the company has added Rs 122 Cr of marketable securities(mutual funds) as it was an ideal surplus fund and an increase in total receivables by Rs 295 Cr in FY21 when compared to FY20.

Hexaware Quick Ratio

Hexaware Interest Coverage Ratio

The company's interest coverage ratio has increased by 64%  from last year due to a decrease in interest expense from Rs 49 Cr in 2020 to Rs 35 Cr in 2021. This was because the company had paid off a debt of Rs 146 Cr and an increase in EBIT from Rs 1,081 Cr in FY20 to Rs 1,200 Cr in FY21. This was driven by a stronger topline which was possible because of the company's active client bas of 320+ clients, out of which 92.4% are repeat customers, higher utilisation, and operational efficiency  

  • Hexaware Operating Efficiency

Operational efficiency is a statistic that compares a company's profit to the costs involved in generating that profit.

Hexaware Operating Profit EBIT Margin(OPM)

The EBIT margins have seen a negligible rise in FY21 compared to FY20 because the overall employee benefits expense and operating expenses have witnessed a surge of 15% and 17%, respectively, due to increased salary allowance, employee stock options and an increase in repair and maintenance costs. 

Hexaware Profit Before Tax Margin (PBT Margin)

The PBT margin has seen an increase of 3% in FY21 when compared to FY20, the rise is due to decreased interest expense by 30% when was due to repayment of long-term debt and a fall of 4 % in depreciation expense which was caused due to disposal of fixed asset like plant & machinery, furniture & fixtures and office equipment.

Hexaware Profit After Tax Margin (PAT Margin)

The Net income margin has increased 5% in FY21 over FY20. This rise was driven by improved efficiency in operations by implementing ideas that saved the company around $ 35 million in FY21. Along with this, a better year-on-year increase in revenue of 15% in FY21 has helped the company to increase the PAT margin. The margins were slightly low last year due to the pandemic, which increased the company's expenses exponentially for employees' welfare.

  • Hexaware Profitablity Ratio

The ability of a business to create money (profit) in relation to sales, balance sheet assets, operating costs, and shareholders' equity over a given time period is measured and evaluated by analysts and investors using profitability ratios. They demonstrate how well a business uses its resources to generate profit and shareholder value.

Hexaware Return on Equity(RoE)

ROE of the company in FY21 has witnessed a growth of 3% in FY21 from FY20. As per Dupont Analysis, the net income margin drove an overall increase in the ROE. Net income margin has witnessed a growth of 5% in FY21 from FY20, the reason being the increase in revenue due to 92% customer retention because of the company's strong domain expertise.  Overall, the equity multiplier and asset turnover ratio have remained stable over the FY21 from FY20, as the company operates under a mature stage of business, and there were no significant changes in the business model. 

Hexaware Return on Capital Employed(RoCE)

Hexaware Return to Assets (RoA)

ROA of Hexaware has seen a 4% rise year on year(y-o-y). The reason for this marginal rise is the CAPEX investment by the company is 2021, which accounted for Rs 109 Cr, side by side company has also seen a 29% and 28% rise in both cash & short-term investments and Total receivables respectively. The Net income of the company has seen an increase of 20% in FY21 in comparison to FY20.

  • Hexaware Valuation Ratios

Hexaware Dividend Yield

Hexaware Earning Yield