Hexaware Technologies Achieves Remarkable CY24 Revenue Growth of 13.7% Year-On-Year

Hexaware Technologies Reports Impressive Financial Results for CY24

Hexaware Technologies, a leading global provider of IT solutions and services, has announced its financial results for calendar year 2024, showcasing robust growth amidst a challenging economic landscape. The company reported a remarkable total revenue of $1,429 million, reflecting a 13.7% increase year-on-year. This growth trajectory is indicative of Hexaware's strategic positioning and effective operational strategies in the IT services sector.

Quarterly Performance Highlights

In the fourth quarter of 2024, Hexaware recorded revenue of $372.3 million, which represents an 18.5% increase compared to the same period last year. The earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q4 CY24 tallied at $60.7 million, an impressive 48% rise year-on-year. This strong performance is a testament to Hexaware's commitment to delivering value to its clients and stakeholders.

Further emphasizing its financial robustness, Hexaware's net profit after tax (PAT) for Q4 reached $38 million, marking a startling 64.5% increase year-on-year. This growth was facilitated by a well-executed strategy that prioritized customer needs and enhanced service offerings across various sectors.

Key Factors Driving Success

According to R Srikrishna, CEO, Hexaware’s growth can be attributed to its unwavering focus on client satisfaction, talent acquisition, and leveraging advanced technological platforms. The company successfully added a customer in the $100 million+ category and increased engagements in the $20+ million bracket, signaling its ability to attract and retain large clients. Improved operational efficiency has also played a crucial role, as demonstrated by an impressive operating margin growth of 18.1% year-on-year.

Hexaware reported a healthy employment rate, with a closing headcount of 32,309 employees, and managed to add 4,017 personnel since the previous quarter. The utilization rate for IT teams stood at 81.6%, further highlighting the company’s operational effectiveness.

Sector-Based Performance Analysis

Examining revenue growth by segments, the healthcare and insurance vertical demonstrated a 10.9% increase, while financial services surged at 19.1% year-on-year. However, the manufacturing sector faced challenges, recording slight declines in quarterly performance. Despite this, Hexaware's agility in pivoting toward more lucrative segments has been pivotal in ensuring overall growth.

Moreover, geographical performance reflected varied strengths, with the Americas showing a 24.1% increase in revenue, while Europe faced a contraction, highlighting the importance of focusing on diversified markets.

Future Outlook

Looking ahead, Hexaware aims to maintain this growth momentum into CY25. Emphasizing innovation, the company plans to increase investment in AI-driven technologies to enhance customer solutions and streamline operations further. The resilience of Hexaware's business model positions it well to navigate the evolving landscape of IT services, reinforcing its commitment to driving client value.

In conclusion, Hexaware Technologies has not only reported strong financial growth for CY24 but has also laid a solid foundation for future success. With strategic planning and dedicated execution, the company is set to achieve its goals while adapting to the fast-paced demands of the tech industry.