Hexaware Technologies (NSE: HEXT), a leading global provider of IT solutions and services, today announced financial results for the fourth quarter of calendar year 2024 ended December 31, 2024.
Financial Summary and Highlights
| USD Mn | INR Mn | ||||||
| Q4CY24 | QoQ (%) | YoY (%) | Q4CY24 | QoQ (%) | YoY (%) | ||
| Revenue | 372.3 | (0.5%) | 18.5% | 31,544 | 0.6% | 20.6% | |
| EBITDA | 60.7 | 1.3% | 48.0% | 5,140 | 2.3% | 50.7% | |
| PAT | 38.0 | 6.4% | 64.5% | 3,207 | 7.0% | 66.3% | |
| CY24 | USD Mn | |
| CY24 | YoY (%) | |
| Revenue | 1,428.9 | 13.7% |
| EBITDA | 227.2 | 18.1% |
| PAT | 140.1 | 16.2% |
| Constant Currency Growth | CY24 | Q4CY24 | |
| YoY % | QoQ % | YoY % | |
| Revenue | 13.5% | 0.2% | 18.8% |
Revenue:
- Q4CY24: USD 372 Mn | INR 31,544 Mn
- USD: (0.5%) QoQ and +18.5% YoY | INR: +0.6% QoQ and +20.6% YoY
- Constant Currency: +0.2% QoQ and +18.8% YoY
- CY24: $1,429 Mn | INR 119,744 Mn
- USD: +13.7% YoY | INR: +15.4% YoY
- Constant Currency: +13.5% YoY
Profitability:
- Reported EBITDA:
- Q4CY24: 16.3% | +2.3% QoQ & +50.7% YoY in absolute terms | +28 bps QoQ & +326 bps YoY in % terms
- CY24: 15.9% | +19.8% YoY in absolute terms | +59 bps YoY in % terms
- Basic EPS:
- Q4CY24: INR 5.25| +5.4% QoQ & +65.1% YoY
- CY24: INR 19.37 | +17.8% YoY
Key Client Metrics:
- Added 1 customer in the $100 Mn+ category
- Added 4 customers in the $20 Mn+ category: 15 in CY24 vs 11 in CY23
- Top 10 customers revenue concentration: 35.8% in CY24
Key People Metrics:
- Closing Headcount: 32,309, Net added 4,017 since Q4CY23
- Voluntary Attrition for IT(1): 10.8%
- Q4CY24 Utilization Rate for IT(2): 81.6%
Other Key Metrics:
- DSO (Billed + Unbilled) at 65 in Q4CY24, of which Billed is 38
- CY24 Adjusted Cash Conversion % at 74.5%
- Strong Cash and Cash Equivalents position as of 31st December 2024 INR 1,977 Cr
- INR 8.75 per share of dividend paid in CY24
Leadership Speak
“We are delighted to be public again. Materially outperforming industry growth with 18.5% YoY Q4CY24 revenue growth reflects the strength of Hexaware’s foundations: putting clients first, creating a home for great talent, and using platforms for real impact. We look forward to building on this momentum for a great CY25,” said R Srikrishna, CEO and Executive Director, Hexaware.
“CY24 performance underlines the resilience of our business model. We clocked strong revenue growth of 13.7% YoY for CY24 while expanding margins at the same time and delivering 18.1% operating margin growth YoY. Our razor-sharp focus on cash flow helped yield OCF to Adjusted EBITDA of 74%+, “ said Vikash Jain, CFO, Hexaware.
Financial Performance
Revenue Performance by Vertical
| In USD Million | Q4CY24 QoQ | Q4CY24 YoY | CY24 YoY |
| Financial Services | 3.5% | 25.0% | 19.1% |
| Healthcare and Insurance | (2.4%) | 16.0% | 10.9% |
| Manufacturing and Consumer | (6.9%) | (0.8%) | 4.5% |
| High Tech and Professional Services | 1.4% | 38.4% | 22.5% |
| Banking | 6.4% | 15.0% | 7.6% |
| Travel and Transportation | (7.6%) | 11.2% | 13.3% |
| Total Revenue | (0.5%) | 18.5% | 13.7% |
Revenue Performance by Geography
| In USD Million | Q4CY24 QoQ | Q4CY24 YoY | CY24 YoY |
| Americas | 2.3% | 24.1% | 17.7% |
| Europe | (9.7%) | 2.7% | 3.0% |
| Asia Pacific | (4.0%) | 8.3% | 6.5% |
| Total Revenue | (0.5%) | 18.5% | 13.7% |
Key Wins
- Modernizing workflows and user interfaces by replacing Appian with AWS cloud-native solutions and implementing ServiceNow ITSM for a large secondary mortgage provider in the US
- GenAI-based legacy modernization project using our proprietary GenAI model to extract business rules and blueprint the application to a new technology stack for a major airline in the US
- Infrastructure operations with AI-first transition to mitigate operational risks and enhance service quality for a global supply chain management and logistics services company in the US
- Digital banking implementation and maintenance for a large bank in Southeast Asia
- Cybersecurity services for a UK-based global provider of financial markets data and infrastructure
- Redesigning and rebuilding the eDiscovery platform and workflow, leveraging our AI-driven platform engineering and product road-mapping expertise for a global leader in eDiscovery, document review, risk management, and legal consulting services