Hexaware Delivers Solid Q2CY25 Revenue of USD 382.1 Mn, Up 8.6% YoY

Business Standard

3 days ago

PRNewswire
Mumbai (Maharashtra) [India], July 25: Hexaware Technologies (NSE: HEXT), a leading global provider of IT solutions and services, today announced financial results for the second quarter of calendar year 2025 ended June 30, 2025.
Revenue:
* Q2CY25: USD 382.1 Mn | INR 32,607 Mn
- USD: +2.8% QoQ and +8.6% YoY | INR: +1.6% QoQ and +11.1% YoY
- Constant Currency: +1.3% QoQ and +7.5% YoY
Profitability:
* Reported EBITDA (1):
- Q2CY25: 17.2% | +53 bps QoQ & +156 bps YoY in % terms
- +6.1% QoQ & +19.4% YoY in absolute terms
* Basic EPS:
- Q2CY25: INR 6.25 | +16.2% QoQ & +37.7% YoY
Key Client Metrics:
* Hexaware Ranked #1 in Service Delivery in the 2025 Whitelane Research IT Sourcing Study for UK & Ireland
* Scaled 1 more customer to USD 50 Mn+ category taking the total count to 4 on Q2'25 LTM basis
Key People Metrics:
* Closing Headcount: 32,410, LTM net headcount addition of 540
* Voluntary Attrition for IT(2): 11.1%
* Q2CY25 Utilization Rate for IT(3): 83.7%
Other Key Metrics:
* DSO (Billed + Unbilled) at 73 in Q2CY25, of which Billed is 40
* LTM Q2CY25 Adjusted Cash Conversion % at 75.5%(4)
* Strong Cash and Cash Equivalents position as of 30th June 2025(5) INR 19,248 Mn
Leadership Speak
"In a difficult global macro environment, we had a solid quarter of execution on revenue, profitability and booking. More importantly, we continue to invest to make a rapid pivot to lead our customers into an AI-powered future," said R. Srikrishna, CEO, Hexaware.
"This quarter reflects our continued momentum, marked by healthy YoY revenue growth, solid margin execution, and outstanding cash flow conversion. Our effective tax rate remains among the best in the industry," said Vikash Jain, CFO, Hexaware.
Notes: (1) EBITDA in USD terms (2) Voluntary attrition rate for the IT service line is calculated as the total number of IT business professionals and support function professionals who left the company voluntarily during a period, divided by the average number of IT business professionals and support function professionals during the period, computed on a trailing twelve-month basis. (3) Utilization rate for IT is calculated as the total hours IT business professionals spend on customer-billed assignments, divided by the total available base hours. IT business professionals designated as Mavericks (campus hires) are included in the utilization computation after the completion of an initial training period of up to four months. (4) LTM OCF / Reported EBITDA - 79.4% (5) Includes restricted cash balance.
Key Wins
- Legacy modernization leveraging RapidX™ for a major airline and a large financial institution
- App modernization using Amaze® for an international healthcare company based in Australia
- Strengthened sales execution of the global wealth business of a large private equity firm, leveraging Salesforce
- App modernization using Amaze® for a top 5 global bank
- AI-driven services for Enterprise Product Development, Assurance Services, and Cloud Ops for a large US-based fintech firm
- Cloud consolidation for a global supply chain management and logistics services company in the US
- Multiple AI and ERP deals with a large property management company in the US
- Azure migration for a leading insurance provider in Belgium
About Hexaware
We are a global digital and technology services company with artificial intelligence ('AI') at its core. We leverage technology to deliver innovative solutions that help our customers in their digital transformation journey and subsequent operations. We embed AI into every aspect of our solutions and have created a suite of platforms and tools that allow our customers to adapt, innovate, and optimize in this AI-first era. We serve a diverse range of customers, including 31 Fortune 500 organizations. With a team of 32,410 employees in 28 countries, our presence is spread across major countries, nationalities, languages, time zones, and regulatory zones. For more information, please visit https://hexaware.com/
Forward-looking Statements
Certain statements in this press release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The Company may, from time to time, make additional written and oral forward statements. We do not undertake to update any forward statements that may be made from time to time by us or on our behalf unless required under the law.
Disclaimer
Use of Non-GAAP Financials
Hexaware has included certain non-GAAP financial measures in this presentation to supplement Hexaware's consolidated financial statements presented on a GAAP basis. These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Hexaware's results as reported under GAAP.
The non-GAAP financial information that we provide also may differ from the non-GAAP information provided by other companies. We compensate for the limitations on our use of these non-GAAP financial measures by relying primarily on our GAAP financial statements and using non-GAAP financial measures only supplementally. We have provided reconciliation of non-GAAP earnings to the most directly comparable GAAP earnings, and we encourage investors to review those reconciliations carefully.
We believe that providing these non-GAAP financial measures in addition to the related GAAP measures provides investors with greater transparency. We further believe that providing this information better enables investors to understand Hexaware's operating performance and financial condition.
Rounding off
Certain amounts and percentage figures included in this presentation have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures preceding them.
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