Mumbai: Shares of Hexaware Technologies fell 5.5% on Thursday after the company said its revenues and margins could be impacted in the June quarter even as it withdrew guidance on its outlook.
While the firm’s consolidated net profit rose 4.27% quarter-on-quarter to ₹174.96 crore in January-March and were ahead of the Street’s expectations, investors were worried about its weak outlook and low cash on books. “Akin to peers, Hexaware withdrew its CY2020 guidance, except refraining from making the usual quarterly dividend payout.
We note that Hexaware has very little net cash compared to peers and its intent to defer dividend could be driven by an aim to conserve cash as clients ask for delayed payment terms along with price discounts," said