Hexaware Technologies surges on signing multi-year agreement worth $ 30 million of estimated revenue

Hexaware Technologies is currently trading at Rs. 91.15, up by 1.30 points or 1.45% from its previous closing of Rs. 89.85 on the BSE.

The scrip opened at Rs. 88.55 and has touched a high and low of Rs. 91.80 and Rs. 87.10 respectively. So far 3,97,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 142.00 on 14-Sep-2012 and a 52 week low of Rs. 72.60 on 25-Jan-2013.

Last one week high and low of the scrip stood at Rs. 91.50 and Rs. 82.50 respectively. The current market cap of the company is Rs. 2,705 crore.

The promoters holding in the company stood at 28.12% while Institutions and Non-Institutions held 46.11% and 18.59% respectively.

Hexaware Technologies, a leading global provider of IT, BPO and consulting services has signed a large deal with revenue estimated at $ 30 million, with an existing Fortune 500 client, headquartered in The United States for a period of 3 years.

Hexaware has been associated with this leading multi-billion corporation for seven years, and this contract further increases its share of wallet with the client. Over the years, Hexaware has evolved to emerge as a key offshore partner for the client. This contract consolidates client IT spend across various business users and multiple technologies. Through this contract, Hexaware will have an estimated $ 5 million worth incremental business over the course of the deal. The revenues from this contract will begin to accrue with immediate effect as it also secures extension for the revenue streams from existing service lines for a 3 year period. An agreement like this gives clients greater predictability over their spend over the course of the deal while giving them greater agility to manage periods of ramp-up and ramp-down in line with business dynamics.

As a part of this engagement, Hexaware provides services that cater to multiple business users across different technology platforms. The service lines include: Software Development and Application Services Management (ASM) through Microsoft, Java and Legacy Applications, Enterprise Solutions through PeopleSoft and SAP, Business Intelligence and Analytics (BI / BA), Quality Assurance and Testing Services (QATS), Remote Infrastructure Management Services (IMS) and Business Process Outsourcing (BPO). Having a single order, such as this, gives Hexaware greater predictability on the business volume and the client a greater visibility on their cash outflows and benefits from economies of scale.