BSE: 532129 | NSE: HEXAWARE | IT - Software | Small Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Hexaware Technologies Ltd is a good quality company.
The key valuation ratios of Hexaware Technologies Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.
No data found
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Dec'13 | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 37.5% | 35.3% | 30.6% | 27% | 25.9% | 26% | 26.3% | 24.9% | 22.4% | 22.3% | - |
| Value Creation Index ⓘ | 1.7 | 1.5 | 1.3 | 1.0 | 0.9 | 0.9 | 1.0 | 0.9 | 0.7 | 0.7 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 1,020 | 1,155 | 1,294 | 1,393 | 1,524 | 1,794 | 2,141 | 2,428 | 3,217 | 4,101 | 4,101 |
| Sales YoY Gr. | - | 13.2% | 12% | 7.7% | 9.4% | 17.7% | 19.3% | 13.4% | 32.5% | 27.5% | - |
| Adj EPS ⓘ | 11.7 | 11.3 | 10.9 | 11 | 12.6 | 14.4 | 16.2 | 17 | 18 | 19.1 | 23 |
| YoY Gr. | - | -3.8% | -3.6% | 0.9% | 14.6% | 14.2% | 13.1% | 4.7% | 5.6% | 6.4% | - |
| BVPS (₹) ⓘ | 29.6 | 34.5 | 36 | 43 | 49.5 | 55.1 | 62.7 | 74.1 | 87.7 | 86.2 | 72 |
| Adj Net Profit ⓘ | 351 | 339 | 328 | 331 | 373 | 426 | 484 | 511 | 542 | 577 | 690 |
| Cash Flow from Ops. ⓘ | 269 | 323 | 288 | 535 | 250 | 339 | 365 | 710 | 995 | 580 | - |
| Debt/CF from Ops. ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 16.7% | 21.9% | 24.2% | 27.5% | ||||
| Adj EPS ⓘ | 5.6% | 8.7% | 5.6% | 6.4% | ||||
| BVPSⓘ | 12.6% | 11.8% | 11.2% | -1.7% | ||||
| Share Price | 10.8% | 6.9% | - | - | ||||
Performance Ratio Colour Code Guide ⓘ
| Dec'13 | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 37.5 | 35.2 | 30.5 | 27 | 25.9 | 26 | 26.3 | 24 | 21.7 | 21.6 | 29 |
| Op. Profit Mgn % ⓘ | 42.4 | 33.8 | 33.3 | 32.5 | 32.2 | 31.3 | 29.7 | 28.1 | 24.9 | 20.5 | 27.9 |
| Net Profit Mgn % ⓘ | 34.4 | 29.4 | 25.3 | 23.8 | 24.5 | 23.8 | 22.6 | 21 | 16.8 | 14.1 | 16.8 |
| Debt to Equity ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - |
| Working Cap Days ⓘ | 161 | 169 | 189 | 167 | 150 | 165 | 173 | 178 | 138 | 118 | 94 |
| Cash Conv. Cycle ⓘ | -17 | 1 | 30 | 24 | 35 | 69 | 78 | 81 | 57 | 57 | 68 |
No data to display
Return on Equity has declined versus last 3 years average to %
Sales growth has been subdued in last 3 years %
Net Profit has been subdued in last 3 years %
Sales growth is not so good in last 4 quarters at %
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 23 | 29.4 |
| TTM Sales (₹ Cr.) | 4,101 | 9,200 |
| BVPS (₹.) ⓘ | 72 | 135 |
| Reserves (₹ Cr.) ⓘ | 2,102 | 3,995 |
| P/BV ⓘ | 6.54 | 3.49 |
| PE ⓘ | 20.49 | 15.99 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 470.10 / 471.30 |
| All Time Low / High (₹) | 2.76 / 557.40 |
| Market Cap (₹ Cr.) | 14,138 |
| Equity (₹ Cr.) | 60.1 |
| Face Value (₹) | 2 |
| Industry PE ⓘ | 31.2 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PARTICULARS | Dec'13 | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,019.95 | 1,154.56 | 1,293.60 | 1,393.04 | 1,524.11 | 1,794.03 | 2,140.91 | 2,427.79 | 3,216.70 | 4,101.30 |
| Operating Expenses ⓘ | 612.79 | 793.58 | 863.03 | 940.12 | 1,033.99 | 1,245.74 | 1,505.70 | 1,745.24 | 2,415 | 3,261.50 |
| Manufacturing Costs | 26.81 | 34.67 | 51.92 | 55.55 | 65.14 | 69.18 | 82.50 | 87.32 | 113.70 | 175.20 |
| Material Costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Employee Cost | 440 | 567.22 | 655.58 | 718.43 | 776.34 | 946.16 | 1,143.51 | 1,374.10 | 1,689.20 | 2,270.60 |
| Other Costs ⓘ | 145.97 | 191.69 | 155.54 | 166.14 | 192.51 | 230.41 | 279.69 | 283.82 | 612.10 | 815.70 |
| Operating Profit ⓘ | 407.17 | 360.98 | 430.56 | 452.92 | 490.12 | 548.28 | 635.21 | 682.54 | 801.70 | 839.80 |
| Operating Profit Margin (%) | 39.9% | 31.3% | 33.3% | 32.5% | 32.2% | 30.6% | 29.7% | 28.1% | 24.9% | 20.5% |
| Other Income ⓘ | 34.41 | 61.24 | 18.79 | 35.88 | 56.66 | 54.18 | 36.69 | 90.97 | 67.90 | 172.10 |
| Interest ⓘ | 0.52 | 1.28 | 0.47 | 0.54 | 0.71 | 1.27 | 1.27 | 29.25 | 23.20 | 27.50 |
| Depreciation ⓘ | 31.03 | 39.17 | 40.84 | 42.32 | 49.34 | 49.41 | 60.99 | 113.02 | 120.30 | 125.40 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | -0.52 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 410.03 | 381.78 | 408.06 | 445.94 | 496.72 | 551.78 | 609.12 | 631.24 | 726.10 | 859 |
| Tax ⓘ | 76.06 | 63.38 | 75.09 | 94.51 | 85.76 | 98.83 | 101.58 | 93.06 | 138.80 | 169.10 |
| Profit After Tax | 333.97 | 318.40 | 332.97 | 351.43 | 410.96 | 452.96 | 507.53 | 538.18 | 587.30 | 689.90 |
| PAT Margin (%) | 32.7% | 27.6% | 25.7% | 25.2% | 27.0% | 25.2% | 23.7% | 22.2% | 18.3% | 16.8% |
| Adjusted EPS (₹) | 11.1 | 10.6 | 11.0 | 11.6 | 13.9 | 15.2 | 17.0 | 17.9 | 19.5 | 22.8 |
| Dividend Payout Ratio (%) | 100% | 89% | 78% | 47% | 29% | 56% | 50% | 39% | 41% | 96% |
| PARTICULARS | Dec'13 | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 888.53 | 1,037.34 | 1,086.69 | 1,299.48 | 1,468.39 | 1,637.86 | 1,870.53 | 2,225.52 | 2,643.40 | 2,603.50 |
| Share Capital ⓘ | 59.98 | 60.19 | 60.31 | 60.41 | 59.36 | 59.47 | 59.68 | 60.07 | 60.30 | 60.40 |
| Reserves ⓘ | 828.55 | 977.15 | 1,026.37 | 1,239.08 | 1,409.03 | 1,578.39 | 1,810.86 | 2,165.45 | 2,583.10 | 2,543.10 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Trade Payables | 148.98 | 170.72 | 135.22 | 152.57 | 82.09 | 79.86 | 88.63 | 190.07 | 272.20 | 261.80 |
| Others Liabilities ⓘ | 427.84 | 232.10 | 276.81 | 120.79 | 88.66 | 142.75 | 145.28 | 490.62 | 515.10 | 636.80 |
| Total Liabilities ⓘ | 1,465.35 | 1,440.16 | 1,498.72 | 1,572.84 | 1,639.14 | 1,860.48 | 2,104.44 | 2,906.22 | 3,430.70 | 3,502.10 |
Fixed Assets | ||||||||||
| Gross Block | 468.40 | 543.99 | 570.03 | 573.77 | 695.70 | 768.44 | 1,027.99 | 1,417.62 | 1,462.20 | 1,582.70 |
| Accumulated Depreciation | 166.51 | 233.66 | 268.99 | 305.75 | 346.13 | 390.93 | 445.92 | 537.73 | 631.40 | 747.70 |
| Net Fixed Assetsⓘ | 301.89 | 310.33 | 301.04 | 268.03 | 349.57 | 377.50 | 582.08 | 879.89 | 830.80 | 835 |
| CWIP ⓘ | 21.25 | 34.65 | 110.54 | 323.61 | 257.17 | 225.30 | 87.19 | 11.10 | 13 | 7.20 |
| Investmentsⓘ | 534.12 | 378.66 | 242.66 | 218.59 | 221.76 | 200.06 | 230.05 | 231.12 | 576.80 | 520.60 |
| Inventories | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Trade Receivables | 238.80 | 340.30 | 397.10 | 273.36 | 414.23 | 536.35 | 654.31 | 847.41 | 928.10 | 1,199.20 |
| Cash Equivalents | 147.49 | 110.42 | 109.96 | 220.35 | 103.28 | 147.49 | 81.93 | 541.98 | 817.10 | 681 |
| Others Assetsⓘ | 221.81 | 265.80 | 337.41 | 268.91 | 293.14 | 373.78 | 468.88 | 394.72 | 264.90 | 259.10 |
| Total Assets ⓘ | 1,465.35 | 1,440.16 | 1,498.72 | 1,572.84 | 1,639.14 | 1,860.48 | 2,104.44 | 2,906.22 | 3,430.70 | 3,502.10 |
| PARTICULARS | Dec'13 | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 268.51 | 323.18 | 287.60 | 534.70 | 250.45 | 339.30 | 365.45 | 709.58 | 994.60 | 579.90 |
| PBT ⓘ | 410.03 | 381.78 | 408.06 | 445.94 | 496.72 | 551.78 | 609.12 | 631.24 | 726.10 | 859 |
| Adjustment ⓘ | -65.87 | 84.42 | 78.28 | 62.93 | 69.45 | 83.46 | 60.47 | 108.57 | 146.80 | 140.40 |
| Changes in Working Capital ⓘ | -3.72 | -63.77 | -111.6 | 125.16 | -199.29 | -177.14 | -192.44 | 47.95 | 239.4 | -259.4 |
| Tax Paid ⓘ | -71.93 | -79.25 | -87.14 | -99.33 | -116.43 | -118.81 | -111.70 | -78.19 | -117.70 | -160.10 |
| Cash Flow From Investing Activity ⓘ | -105.65 | 155.91 | 26.77 | -188.68 | -89.94 | -44.62 | -125.08 | 2.22 | -395.70 | 2.20 |
| Capex | -31.41 | -25.97 | -99.84 | -204.96 | -89.19 | -54.60 | -97.06 | -47.26 | -51.60 | -82.80 |
| Net Investments | -98.86 | 144.26 | 144.16 | 22.08 | -0.07 | 8.79 | 10.13 | 0 | -345.70 | 86.90 |
| Others ⓘ | 24.62 | 37.63 | -17.56 | -5.80 | -0.69 | 1.19 | -38.15 | 49.47 | 1.60 | -1.90 |
| Cash Flow From Financing Activityⓘ | -125.47 | -536.07 | -314.12 | -249.39 | -279.52 | -250.21 | -305.31 | -250.48 | -324.60 | -716.10 |
| Net Proceeds from Shares ⓘ | 7.92 | 4.81 | 3.13 | 1.31 | 1.24 | 0.42 | 0.16 | 0.39 | 0.30 | 0.10 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Paid ⓘ | -0.14 | -0.84 | -0.03 | -0.11 | -0.06 | -0.03 | -0.04 | -6.74 | -0.30 | -3.40 |
| Dividend Paid ⓘ | -133.25 | -540.04 | -317.22 | -250.59 | -142.81 | -250.60 | -305.43 | -209.23 | -241 | -663.70 |
| Others ⓘ | 0 | 0 | 0 | 0 | -137.89 | 0 | 0 | -34.90 | -83.60 | -49.10 |
| Net Cash Flow ⓘ | 37.39 | -56.98 | 0.25 | 96.64 | -119.01 | 44.47 | -64.94 | 461.31 | 274.30 | -134 |
| PARTICULARS | Dec'13 | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 35.67 | 33.07 | 31.35 | 29.46 | 29.7 | 29.16 | 28.93 | 26.28 | 24.12 | 26.3 |
| ROCE (%) | 43.83 | 39.78 | 38.05 | 36.38 | 34.47 | 33.74 | 33.1 | 31.01 | 30.07 | 33.16 |
| Asset Turnover Ratio | 0.73 | 0.79 | 0.88 | 0.91 | 0.95 | 1.03 | 1.08 | 0.97 | 1.02 | 1.18 |
| PAT to CFO Conversion(x) | 0.8 | 1.02 | 0.86 | 1.52 | 0.61 | 0.75 | 0.72 | 1.32 | 1.69 | 0.84 | Working Capital Days |
| Receivable Days | 88 | 92 | 104 | 88 | 82 | 97 | 102 | 113 | 101 | 95 |
| Inventory Days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Payable Days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Hexaware Technologies (HTL) is IT and Process outsourcing service provider in global space. HTL was incorporated on November 1992. The company provides technological solutions and specialises in Business Intelligence, Business Analytics, Enterprise Applications, Transportation, HR-IT and Legacy Modernization. It delivers services to industries like Banking and Financial, Insurance and Travel transportation and logistics. The company’s onsite/offshore delivery model provides significant cost savings. The development centers are assessed at SEI CMMI-Level 5, and are also ISO 9001:2000 and TickIT certified.
Founded in 1990 Hexaware today maintains seven state-of-the-art development centers – four in India and one each in Germany, USA and Mexico, and offices in North America, Europe and Asia Pacific, and employs around 6000 workers globally. Hexaware’s centers comply with the crucial quality and security best practices – SEI CMMI Level 5 and BS 7799.
In 2006, Hexaware acquired FocusFrame, a US based specialized testing consulting firm, in an all cash deal for $34.3 mn. FocusFrame is a California-based firm specializing in automated testing of ERP and custom applications. Their business revolves around systems verification, Quality Strategy and IT Governance solutions, and various functional, performance, and system stress verification exercises. The Company completed the integration of the Quality Assurance and Testing Services(QATS) operations of FocusFrame with Hexaware in early 2009.
Hexaware launched a joint venture Risk Technology International Limited in 2007. In the first quarter of 2009, Hexaware acquired the remaining stake from its JV partner Pemtrad International, to convert RiskTech into a wholly owned subsidiary.
Hexaware is committed to quality and its development centers are assessed at SEI CMMI Level 5. It is also certified ISO 9001:2000, BS 7799, TickIT and SAS 70 Type 1. Hexaware has been certified as PCI DSS 1.2 (Payment Card Industry Data Security Standard) compliant. Payment Card Industry Data Security Standard is a data security standard promoting confidentiality of card holder data and facilitating the broad adoption of consistent data security measures globally.
It provides enterprise solution such as Peoplesoft, SAP, Oracle applications, JDE and Siebel. It has partnered with Microsoft to provide end to end solutions by using Microsoft’s Technologies.
Hexaware's global operations are located in North America, Europe and Asia Pacific. It is also listed on Luxembourg stock exchanges.
Business areas
Banking and Financial services- Under this it offers services in areas like asset management, corporate banking, retail banking and leasing. It provides wide range of services such as eagle, calypso, murex, temenos, GL trade, etc.
Insurance services- The company provides services in areas of underwriting, policy administration, claims administration and agency compensation. Under this it has created HexSOAF.
Travel transportation and logistics- It provides services to industries like Airlines and Airports, Travel and hospitality and Logistics. It provides solution like business analytics, Airlines MRO solutions, revenue accounting system, RFID Solutions etc. For Airline BPO services to offers caliber point business solutions.
Milestones
2014
Launch of Manufacturing Vertical
Launch of HCM service offering
2013
Hexaware opens delivery centre in Singapore
Wins large IT+BPO Multi Million Dollar deal for a Logistics Major in APAC
Wins the Application Partner of the Year 2013 – HCM Cloud [Asia Pacific]
Wins Top 100 CISO Award
Listed among Asia’s 200 Best Under a Billion on Forbes
Wins the first client in OTM
Winner of Top 100 CISO Award 2013.
Winner of BPO Excellence Awards 2012- 2013 [Subsidiary : Caliber Point].
2012
Launches several offerings through SaaS model leveraging Cloud Solutions, Mobile Testing Solutions as a new service offering in Enterprise Mobility
Ranks in International Association of Outsourcing Providers® (IAOP®) Global Outsourcing 100® list
Winner of the prestigious UK Oracle User Group PeopleSoft Partner of the Year Award for the year 2012.
2011
Wins a USD 250 mn contract - largest for the Company till date
Signs USD 177 mn contract
Wins Golden Peacock Award for Excellence in Corporate Governance
2010
Expands reach to 20 countries
Signs the first USD 100+ mn contract
Establishes Global Delivery Centre in Bengaluru, India
Global Platinum Partnership with Oracle
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Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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