Hexaware Technologies reported a 5.5% YoY increase in revenue to USD 394.8 million for Q3 CY25. The company also announced the acquisition of CyberSolve to enhance its Al-led cybersecurity capabilities. EBITDA margin reached 17.5%, and EPS stood at INR 6.09, a 22.3% YoY increase. These results reflect Hexaware’s continued growth and strategic investments in key areas.
Financial Performance
Hexaware Technologies (NSE: HEXT) announced its Q3 CY25 financial results, showcasing robust growth:
- Revenue: USD 394.8 million, up 5.5% year-over-year (YoY).
- EBITDA: USD 69.3 million, a 15.6% YoY increase.
- PAT: USD 41.9 million, up 17.5% YoY.
- EPS: INR 6.09, reflecting a 22.3% YoY increase.
In INR terms, revenue reached INR 34,836 million, an 11.1% YoY increase.
Segment Highlights
Here’s a breakdown of revenue performance by key verticals:
- Financial Services: Up 2.1% quarter-over-quarter (QoQ), 12.2% YoY.
- Healthcare and Insurance: Up 11.3% QoQ, 9.4% YoY.
- Manufacturing and Consumer: Up 16.5% QoQ, 8.0% YoY.
Acquisition of CyberSolve
Hexaware will acquire CyberSolve to strengthen its Al-led cybersecurity capabilities and tap into the Identity and Access Management (IAM) market. The transaction involves acquiring 100% stake in CyberSolve for an estimated total consideration of USD 66 million. This comprises an upfront consideration of USD 34.5 million, and USD 31.5 million earnouts linked to financial performance.
Strategic Rationale for CyberSolve Acquisition
The acquisition aims to position Hexaware as a cybersecurity partner, offering Al-powered solutions and leveraging CyberSolve’s expertise in Identity and Access Management (IAM). Key benefits cited include enhanced customer offerings, cross-selling opportunities, and strengthened capabilities in a high-growth market.
Merger of Subsidiaries
The Board of Directors has given in-principle approval for the merger of various subsidiaries to simplify the group structure, including mergers in India, US, and Netherlands.
Other Key Metrics
- Closing Headcount: 33,590
- Voluntary Attrition (IT): 11.4%
- Utilization Rate (IT): 83.8%
Source: BSE
