Hexaware Technologies Plunges 10% on Weak Earnings

Shares of Hexaware Technologies slumped over 10 per cent to hit low of Rs 278 on the Bombay Stock Exchange after the company reported that its net profit for the fourth quarter declined 4.2 per cent to Rs 89.35 crore.

Hexaware had posted net profit of Rs 87 crore in the previous quarter.

The revenues of Hexaware jumped marginally to Rs 713 crore from Rs 711 crore in the previous quarter. The gross profit margins of Hexaware which indicate the profitability of the company fell to 17.8 per cent from 19.9 per cent in the previous quarter.

The results were below the analysts' expectations.

The IT companies have been disappointing the market analysts by posting poor set of March quarter numbers. All the large-cap IT companies such as Infosys, Wipro, HCL Technologies and TCS posted numbers which fell short of analyst expectations.

Now, the mid-cap IT firms are also posting poor earnings. On Wednesday, KPIT Cummins reported earnings which were below the estimates. The earnings posted by IT companies have raised doubts about the technology sector in the minds of investors who are selling technology shares.

The CNX IT index, a sub-index of the IT stocks has been closing lower since the last 10 out of 11 trading sessions and it has plunged nearly 11.5 per cent.

The shares of Hexaware Technologies ended 9 per cent lower at Rs 281.