Enterprise
Hexaware was delisted from inventory exchanges in November 2020. In 2021, Carlyle acquired it from ETQ (earlier Baring Non-public Fairness Asia) for round $ 3 billion by way of an funding holding firm CA Magnum Holdings. Hexaware focuses on capital markets, healthcare, and insurance coverage verticals, which collectively contribute practically half to the income whereas one-third of it’s from manufacturing, shopper, hi-tech {and professional} companies segments. It earns over 72% income from Americas, 22% from Europe and remaining from Asia Pacific. Offshore companies contribute over 43% to income whereas the remainder is from onshore actions. High 10 purchasers contributed over 35% to income in contrast with round 30% and 40% for Coforge and Persistence Techniques. It had 32,536 workers on the finish of September 2024. The worker attrition price was 11.3%, lowest amongst friends. The corporate has designed proprietary AI platforms throughout digital transformation, automation and cloud adoption.
Financials
The corporate follows the calendar yr as its fiscal yr. Income elevated by 20.3% yearly to Rs10,380.3 crore and web revenue rose by 15.4% to Rs997.6 crore between FY21 and FY23. The working margin earlier than depreciation and amortisation (EBITDA margin) remained at 15-16% over the interval, just like friends. Within the 9 months to September 2024, Hexaware’s income grew by 13.6% year-on-year to Rs 8,820 crore whereas web revenue grew by 6% Rs853.3 crore. The corporate is debt free. It has paid over 50% of web revenue as dividends over the previous few years.
Valuation
Contemplating the annualised web revenue for the 9 months to September 2024, Hexaware calls for a ahead price-earnings (P/E) a number of of round 38. Coforge and Persistent commerce at P/Es of round 66 and 69 respectively.
