Hexaware Technologies shares slipped sharply in trade, falling over 9% after the company reported a weak set of Q3 results that came in below market expectations. The sharp correction reflects investor concerns around profitability and margin pressure despite largely stable revenue.
On a consolidated basis, Hexaware Technologies reported Q3 revenue of Rs 3,478 crore, marginally lower by 0.2% on a quarter-on-quarter basis compared with Rs 3,484 crore in the previous quarter. While revenue remained largely flat, earnings were hit significantly, highlighting cost pressures during the quarter.
EBIT declined steeply by 50.4% QoQ to Rs 254 crore from Rs 512.4 crore in Q2. As a result, the EBIT margin contracted sharply by 740 bps to 7.3% from 14.7% in the preceding quarter. The margin compression emerged as the key negative takeaway from the results, weighing heavily on investor sentiment.
Net profit for the quarter stood at Rs 292 crore, down 21.2% compared with Rs 370 crore reported in the previous quarter.
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