Hexaware Tech rises on probable American interest rate reduction, weak rupees

Et Intelligence Group: Since 5 September, the shares of Hexaware Technologies have won more than 5% more than 5% in seven trade sessions compared to the 3% profit in the ET Infotech index. A weaker rupid and an expected interest rate reduced by the American federal reserves that the American customers can encourage to increase technological expenses, have increased the importance of investors in IT shares. The rise has also reduced the loss of three months in the Hexaware share price to 9%. Analysts have retained the ‘sale’ rating on the stock that emphasizes the margin improvement and tapered pressure on larger customer accounts.

Hexaware is a mid-tier global IT service company with a turnover of $ 1.4 billion (£ 11,974 crore) in 2024, which offers services in banking, financial services, health care, production and travel entities. The US is the largest market that contributes to more than three -quarters at the top, followed by Europe, which contributes 20%.

The successive revenue growth of the company in Constant Currency (CC) was modest at 1.3% in the quarter of June due to the reduction of expenditure by one of its large customers. In addition to the production and consumers (M&C) vertical vertical vertical vertical vertical vertical revenue growth growth reported. According to business management, the performance of M&C was influenced by macro -economic factors, including the rate of uncertainties that delayed the decision -making of customers. It expects the situation to gradually improve in the coming quarters. The banking terty, which contributed 8% to sales in the quarter of June, reported a strong successive growth of 13.8% that reflected a strong momentum.

The company has made efforts to improve the OFFshore income share, which supports the total profitability. In the quarter of June, the share of offshore services increased successively by 110 basic points and 290 basic points on an annual basis to 46.7%. The use of employees has also increased. It rose with 160 basic points and 130 basic points to 83.7% due to comparable comparison. In contrast to some of the larger colleagues, the wear of the company remained well under control. It fell marginal by 10 basic points to 11.1% in the quarter of June from the previous quarter.

These factors are good for the company’s marine profile. The operational margin before depreciation and amortization (EBITDA margin) expanded with 70 basic points in succession and 160 basic points on an annual basis to 17.3%. The company is expected to pay the guidelines of 17.1-17.4% margin for the current year.

Analysts have reduced the growth sessions in view of the delays of the customer while retaining the buying rating on the shares. JM Financial Services has shortened the CC turnover growth to 7% for 2026 of 9%.