Hexaware Reports Strong Q2CY25 Revenue of $382.1M, Up 8.6% YoY

Daftar Isi

Financial Highlights for Hexaware Technologies in Q2CY25

Hexaware Technologies, a leading global provider of IT solutions and services, has released its financial results for the second quarter of calendar year 2025, which ended on June 30, 2025. The company reported strong performance across several key metrics, reflecting its continued growth and operational efficiency.

Revenue Performance

In the second quarter of 2025, Hexaware generated revenue of USD 382.1 million or INR 32,607 million. This represents a significant increase compared to previous periods:

Quarter-over-quarter (QoQ): Revenue grew by 2.8% in USD terms and 1.6% in INR terms.
Year-over-year (YoY): Revenue increased by 8.6% in USD and 11.1% in INR.
Constant currency: The company maintained a growth rate of 1.3% QoQ and 7.5% YoY.

This growth underscores Hexaware’s ability to navigate a challenging economic landscape while maintaining steady expansion.

Profitability Metrics

The company also demonstrated improved profitability in the quarter:

Reported EBITDA:
EBITDA margin stood at 17.2%, an improvement of 53 basis points from the previous quarter and 156 basis points from the same period last year.
In absolute terms, EBITDA rose by 6.1% QoQ and 19.4% YoY.
Basic EPS:
The basic earnings per share (EPS) was INR 6.25, marking a 16.2% increase QoQ and a 37.7% rise YoY.

These figures highlight Hexaware’s strong financial performance and effective cost management strategies.

Client and People Metrics

Hexaware continues to strengthen its relationships with key clients and invest in its workforce:

Client Recognition:
The company was ranked #1 in service delivery in the 2025 Whitelane Research IT Sourcing Study for the UK and Ireland.
It added one more client to the USD 50 million+ category, bringing the total to four on a trailing twelve-month (LTM) basis.
Workforce Development:
Closing headcount was 32,410, with a net addition of 540 employees over the LTM period.
Voluntary attrition for IT professionals stood at 11.1%.
The utilization rate for IT professionals reached 83.7%.

These metrics reflect Hexaware’s focus on retaining talent and optimizing productivity.

Operational Efficiency

Other important operational metrics include:

DSO (Days Sales Outstanding):
Total DSO was 73 days, with billed DSO at 40 days.
Cash Conversion:
Adjusted cash conversion percentage for the LTM period was 75.5%.
Financial Position:
As of June 30, 2025, the company had a strong cash and cash equivalents position of INR 19,248 million.

Leadership Insights

Hexaware’s leadership emphasized the company’s resilience and strategic focus during a difficult macroeconomic environment:

R. Srikrishna, CEO:
“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.”
Vikash Jain, CFO:
“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.”

Key Wins and Strategic Focus

Hexaware has secured several major deals that highlight its expertise in digital transformation:

Legacy Modernization: Leveraged RapidX™ for a major airline and a large financial institution.
App Modernization: Used Amaze® for an international healthcare company based in Australia and a top 5 global bank.
Sales Execution: Strengthened sales for a large private equity firm using Salesforce.
AI-Driven Services: Provided Enterprise Product Development, Assurance Services, and Cloud Ops for a US-based fintech firm.
Cloud Consolidation: Assisted a global supply chain management and logistics services company in the US.
Multiple Deals: Secured AI and ERP projects with a large property management company in the US.
Azure Migration: Helped a leading insurance provider in Belgium transition to Azure.

About Hexaware

Hexaware is a global digital and technology services company that places artificial intelligence (AI) at the core of its operations. The company delivers innovative solutions that support its clients’ digital transformation journeys. With a team of 32,410 employees operating in 28 countries, Hexaware serves a diverse range of industries, including 31 Fortune 500 organizations.

Forward-Looking Statements

Certain statements in this release are forward-looking and involve risks and uncertainties. These include fluctuations in earnings, challenges in managing growth, competition in the IT sector, wage increases, and other factors that could affect actual results.

Disclaimer

The press release includes non-GAAP financial measures to supplement GAAP reporting. These measures should be used in conjunction with GAAP results and are not intended as standalone indicators of performance.