Revenue and Profit Growth
Hexaware Tech's net sales have shown a remarkable upward trajectory, rising from ₹3,123.52 crores in 2015 to ₹11,974.40 crores in 2024. This represents nearly a fourfold increase over the nine-year period, underscoring the company's successful expansion and market penetration. The total operating income mirrors this growth, with no other operating income reported, indicating that core business activities have driven revenue gains.
Operating profit before depreciation and interest (PBDIT) excluding other income increased from ₹535.82 crores in 2015 to ₹1,830.20 crores in 2024, reflecting improved operational efficiency despite rising employee and manufacturing costs. Including other income, operating profit rose to ₹1,905.10 crores in 2024, up from ₹552.98 crores in 2015.
Profit before tax (PBT) climbed steadily from ₹504.61 crores in 2015 to ₹1,560.30 crores in 2024, while profit after tax (PAT) grew from ₹393.21 crores to ₹1,174.00 crores over the same period. The consolidated net profit similarly increased, reaching ₹1,176.40 crores in 2024. Earnings per share (EPS) showed a positive trend, rising from ₹13.04 in 2015 to ₹19.35 in 2024, despite some fluctuations in earlier years.
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Cost Structure and Margins
Employee costs have risen substantially, from ₹1,773.22 crores in 2015 to ₹6,964.90 crores in 2024, reflecting the company's scaling workforce and investment in talent. Manufacturing expenses also increased, particularly noticeable from ₹281.89 crores in 2015 to over ₹1,676 crores in 2019, though no manufacturing expenses were reported in the latest years. Other expenses emerged in recent years, reaching ₹3,179.30 crores in 2024, contributing to the total expenditure of ₹10,144.20 crores.
Despite rising costs, Hexaware has maintained stable operating profit margins, with the operating profit margin excluding other income hovering around 15.28% in 2024, slightly down from 17.15% in 2015 but consistent with industry standards. The PAT margin has seen a modest decline from 12.59% in 2015 to 9.8% in 2024, indicating some pressure on net profitability but still reflecting healthy earnings relative to sales.
Balance Sheet Strength and Asset Growth
The company's total assets have expanded significantly, from ₹2,411.76 crores in 2017 to ₹8,726.30 crores in 2024. This growth is supported by a substantial increase in net block assets, which rose from ₹541.37 crores in 2017 to ₹3,199.90 crores in 2024, signalling ongoing capital investments. Shareholders' funds have also grown robustly, reaching ₹5,356.90 crores in 2024, up from ₹2,007.28 crores in 2017, reflecting retained earnings and capital accumulation.
Hexaware has effectively managed its debt levels, with total debt reducing to zero in 2024 after peaking at ₹143.07 crores in 2019. This deleveraging enhances the company's financial stability and reduces interest burden, which was ₹66.00 crores in 2024 compared to much lower levels in earlier years.
Cash Flow and Liquidity
Cash flow from operating activities has shown consistent improvement, rising from ₹596 crores in 2019 to ₹1,548 crores in 2024. This strong cash generation supports the company’s investing activities, which have involved significant outflows, notably ₹662 crores in 2024. Financing activities have seen net outflows, reflecting repayments and shareholder returns. The closing cash and cash equivalents have increased markedly, reaching ₹1,976 crores in 2024, up from ₹231 crores in 2019, indicating solid liquidity and cash management.
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Summary of Historical Performance
Over the past decade, Hexaware Technologies has exhibited strong financial growth, underpinned by expanding revenues and profits. The company’s ability to scale operations while maintaining healthy margins is evident, despite rising employee and other operational costs. Its balance sheet has strengthened considerably, with increased asset base and equity, alongside a reduction in debt levels. Cash flow trends further reinforce the company’s operational efficiency and liquidity position.
While profit margins have experienced slight compression, the overall financial health and growth trajectory remain positive. Hexaware’s consistent increase in earnings per share and net profit highlights its capacity to generate shareholder value. The company’s strategic investments in capital assets and prudent financial management position it well for sustained growth in the competitive IT services sector.
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