X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
HEXAWARE TECHNOLOGIES 2016-17 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

HEXAWARE TECHNOLOGIES 2016-17 Annual Report Analysis
Mon, 18 Mar

HEXAWARE TECHNOLOGIES has announced its results for the year ended December 2017. Let us have a look at the detailed performance review of the company during FY16-17.

HEXAWARE TECHNOLOGIES Income Statement Analysis

  • Operating income during the year rose 11.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 14.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.8% in CY17 as against 17.3% in CY16.
  • Depreciation charges increased by 14.5% and finance costs decreased by 14.3% YoY, respectively.
  • Other income declined by 6.8% YoY.
  • Net profit for the year grew by 19.2% YoY.
  • Net profit margins during the year grew from 11.8% in CY16 to 12.7% in CY17.

HEXAWARE TECHNOLOGIES Income Statement 2016-17

No. of Mths Year Ending 12 Dec-16* 12 Dec-17* % Change
Net Sales Rs m 35,349 39,420 11.5%
Other income Rs m 38 36 -6.8%
Total Revenues Rs m 35,387 39,456 11.5%
Gross profit Rs m 6,120 7,001 14.4%
Depreciation Rs m 553 633 14.5%
Interest Rs m 1 1 -14.3%
Profit before tax Rs m 5,604 6,403 14.3%
Tax Rs m 1,412 1,411 -0.1%
Profit after tax Rs m 4,192 4,995 19.2%
Gross profit margin % 17.3 17.8
Effective tax rate % 25.2 22.0
Net profit margin % 11.8 12.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HEXAWARE TECHNOLOGIES Balance Sheet Analysis

  • The company's current liabilities during CY17 down at Rs 5 billion as compared to Rs 5 billion in CY16, thereby witnessing an decrease of -4.3%.
  • Current assets rose 18% and stood at Rs 15 billion, while fixed assets fell 7% and stood at Rs 8 billion in CY17.
  • Overall, the total assets and liabilities for CY17 stood at Rs 25 billion as against Rs 23 billion during CY16, thereby witnessing a growth of 10%.

HEXAWARE TECHNOLOGIES Balance Sheet as on December 2017

No. of Mths Year Ending 12 Dec-16* 12 Dec-17* % Change
Networth Rs m 17,409 20,073 15.3
 
Current Liabilities Rs m 5,401 5,170 -4.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 23,110 25,453 10.1
 
Current assets Rs m 12,333 14,535 17.9
Fixed Assets Rs m 8,557 7,977 -6.8
Total Assets Rs m 23,110 25,453 10.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HEXAWARE TECHNOLOGIES Cash Flow Statement Analysis

  • HEXAWARE TECHNOLOGIES's cash flow from operating activities (CFO) during CY17 stood at Rs 5 billion, an improvement of 0.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY17 stood at Rs -938 million on a YoY basis.
  • Cash flow from financial activities (CFF) during CY17 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during CY17 stood at Rs 1 billion from the Rs 262 million net cash flows seen during CY16.

HEXAWARE TECHNOLOGIES Cash Flow Statement 2016-17

Particulars No. of months 12 12 % Change
Year Ending Dec-16 Dec-17
Cash Flow from Operating Activities Rs m 4,730 4,762 0.7%
Cash Flow from Investing Activities Rs m -1,999 -938 -
Cash Flow from Financing Activities Rs m -2,494 -2,796 -
Net Cash Flow Rs m 262 1,021 289.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HEXAWARE TECHNOLOGIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.8, an improvement from the EPS of Rs 13.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 342.5, stands at 17.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-16* 12 Dec-17*
Sales per share (Unadj.) Rs 117.0 132.8
TTM Earnings per share Rs 13.9 16.8
Diluted earnings per share Rs 13.9 16.6
Price to Cash Flow x 21.8 18.3
TTM P/E ratio x 17.7 17.7
Price / Book Value ratio x 3.9 4.0
Market Cap Rs m 103,445 103,134
Dividends per share (Unadj.) Rs 5.5 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HEXAWARE TECHNOLOGIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.8x during CY17, from 2.3x during CY16. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 5,336.9x during CY17, from 4,003.9x during CY16. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 24.9% during CY17, from 24.1% during CY17. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 31.9% during CY17, from 32.2% during CY16. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 19.6% during CY17, from 18.1% during CY16. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-16* 12 Dec-17*
Current ratio x 2.3 2.8
Debtors’ Days Days 45 50
Interest coverage x 4,003.9 5,336.9
Debt to equity ratio x 0.0 0.0
Return on assets % 18.1 19.6
Return on equity % 24.1 24.9
Return on capital employed % 32.2 31.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how HEXAWARE TECHNOLOGIES has performed over the last 5 years, please visit here.

HEXAWARE TECHNOLOGIES Share Price Performance

Over the last one year, HEXAWARE TECHNOLOGIES share price has moved up from Rs 370.1 to Rs 342.5, registering a loss of Rs 27.6 or around 7.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,169.9 (up 0.1%). Over the last one year it has moved up from 12,317.8 to 15,169.9, a gain of 2,852 points (up 23.2%).

Overall, the S&P BSE SENSEX is up 13.2% over the year.

(To know more, check out historical annual results for HEXAWARE TECHNOLOGIES and quarterly results for HEXAWARE TECHNOLOGIES)

Equitymaster requests your view! Post a comment on "HEXAWARE TECHNOLOGIES 2016-17 Annual Report Analysis". Click here!

  

Related Views on News

HEXAWARE TECHNOLOGIES Announces Quarterly Results (4QFY19); Net Profit Up 3.1% (Quarterly Result Update)

Apr 25, 2019 | Updated on Apr 25, 2019

For the quarter ended March 2019, HEXAWARE TECHNOLOGIES has posted a net profit of Rs 1 bn (up 3.1% YoY). Sales on the other hand came in at Rs 13 bn (up 17.5% YoY). Read on for a complete analysis of HEXAWARE TECHNOLOGIES's quarterly results.

HEXAWARE TECHNOLOGIES 2017-18 Annual Report Analysis (Annual Result Update)

Apr 2, 2019 | Updated on Apr 2, 2019

Here's an analysis of the annual report of HEXAWARE TECHNOLOGIES for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of HEXAWARE TECHNOLOGIES. Also includes updates on the valuation of HEXAWARE TECHNOLOGIES.

HEXAWARE TECHNOLOGIES Announces Quarterly Results (3QFY19); Net Profit Up 2.0% (Quarterly Result Update)

Jan 31, 2019 | Updated on Jan 31, 2019

For the quarter ended December 2018, HEXAWARE TECHNOLOGIES has posted a net profit of Rs 1 bn (up 2.0% YoY). Sales on the other hand came in at Rs 12 bn (up 22.2% YoY). Read on for a complete analysis of HEXAWARE TECHNOLOGIES's quarterly results.

Newgen Software Technologies Ltd. (IPO)

Jan 15, 2018

Should you subscribe to the IPO of Newgen Software Ltd?

Ankit Shah's First Five Insider Recommendations (The 5 Minute Wrapup)

Aug 5, 2017

How to get exclusive insider recommendations from Ankit Shah.

More Views on News

Most Popular

7 Stocks That Will Remain Evergreen in this Era of Technological Disruption(The 5 Minute Wrapup)

Jun 13, 2019

We are living in an era of disruption. Are your stocks well equipped to adapt to changes that disruption will bring along?

The Great Indian NBFC Bubble Has Burst but I Will Still Recommend These Safe NBFCs(The 5 Minute Wrapup)

Jun 11, 2019

One chart that predicted the NBFC crisis back in 2016.

Just One Stock Made Buffett Billions - And Can Make You Crores(Profit Hunter)

Jun 6, 2019

Coca Cola is arguably one of Warren Buffet's best stock picks. But did you know that small investors picked up the stock five decades before Buffet? Read on...

Kenneth Andrade Would Like Our Real Estate Stock Recommendation with Triple Digit Upside(The 5 Minute Wrapup)

Jun 12, 2019

This real estate stock recommended in Smart Money Secrets offers the most favourable upside potential.

Why Modi 2.0 Will Be Great for These 7 Stocks(Profit Hunter)

Jun 10, 2019

The government's focus on Infra, electricity, water for all will be the key factors for Sensex 1,00,000.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK HEXAWARE TECHNOLOGIES

  • Track your investment in HEXAWARE TECHNOLOGIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON HEXAWARE TECHNOLOGIES

HEXAWARE TECHNOLOGIES - BARTRONICS INDIA COMPARISON

COMPARE HEXAWARE TECHNOLOGIES WITH

MARKET STATS