Hexaware Technologies Limited announced a correction to the transcript of its investor/analyst call held on April 30, 2025, regarding Q1 CY25 results. A typographical error incorrectly stated the margin for Q1 as 67.7% instead of the correct 16.7%.

The company's Q1 CY25 performance and outlook were discussed in detail during the call:

• Q1 CY25 Financials: Revenue grew 12.4% YoY in reporting currency (12.7% in constant currency). EBITDA margin was 16.7%, improving by 40 bps sequentially and up ~20% YoY in absolute terms. EPS was up 16.7% YoY. The company ended the quarter with a healthy cash balance of $225 million, debt-free.
• Operational Highlights: Offshore mix improved by 200 bps QoQ. Net headcount declined, but IT headcount increased by ~100. Attrition was 11.2%. Utilization improved QoQ to 82-83%. DSO was 75 days (target 70-72 days). LTM Q1 OCF to EBITDA was 67% (target 70%). Effective Tax Rate (ETR) for Q1 was 25%, with a full-year guidance of ~26%.
• Dividend: Post-quarter close, a dividend of $5.75 per share was declared, totaling $40 million.
• Strategic Focus & Deal Wins: The company is focusing on four strategic accelerators: AI legacy modernization (seeing strong pipeline with 40+ clients), PE as a channel, expansion in HealthTech/ISVs (splitting High-Tech and PS verticals), and growing Middle East/India markets (healthy pipeline, seeking significance in India GCC). Significant recent wins include a transnational bank (becoming non-incumbent vendor for ~$200M/annum work), a European bank (lead SAP implementer for a large transformation), a global bank (app modernization), a legal advisory firm (GenAI app), an airline (One Order implementation), another top 10 global legal firm, a large conglomerate's healthcare division (app/legacy modernization), and a large pet insurance company (strategic supplier).
• GSE Client Updates: A previously delayed consolidation deal with one GSE client has now begun. Another GSE client had a sharp ramp-down announced recently (~1% of company revenue impact), but management sees potential large upside from future vendor consolidation (opportunity involving 2,500 FTEs). Another large consolidation opportunity exists in a different global bank (potential for $0.5 billion/annum spend).
• Outlook for 2025: The company is not providing formal annual guidance but expects a "pretty solid year". Q2 will see underlying strong performance moderated by the two specific headwinds (GSE ramp-down, program end), resulting in a "good Q2". Accelerated growth is expected in Q3 as these headwinds subside. Sequential growth is anticipated in Q4, potentially bucking the usual trend, driven by pipeline and backend ramp-ups. The company plans to hire 1800-2000 IT personnel in Q2. Banking and Financial Services are expected to lead growth, while M&C will be a drag. The full-year EBITDA margin guidance of 17.1% to 17.4% is reiterated, with ERP costs providing a tailwind from the end of Q2. Management expressed confidence in achieving the medium-term goal of $3 billion revenue by CY2029.