Hexaware relists, but faces stock market scrutiny

Hexaware Technologies has recently made a comeback to the stock market after delisting in 2020. The company celebrated its relisting on February 19 with a lively event, highlighting its growth from a smaller IT firm to a significant player. Hexaware reported impressive revenue growth leading up to its relisting, but the excitement was short-lived as the stock faced challenges following its first quarterly results. Investors were disappointed when Hexaware’s revenue growth showed only a slight increase of 0.2% month-on-month, leading to a 6.75% drop in its stock price. CEO R. Srikrishna, known as Keech, maintained confidence, citing strong yearly revenue growth and improvements in profit margins, though he acknowledged the market's reaction. Concerns about near-term demand and economic factors in the US contributed to the stock's decline. Hexaware has a strong client base predominantly in the US, covering sectors like banking, healthcare, and technology. Founded in 1992, the company has evolved significantly and expanded its services. It was backed by private equity firm Baring Asia, which helped drive its growth strategy. In 2021, Carlyle Group acquired Hexaware, further bolstering its global ambitions. The company aims to grow its revenue to $3 billion by 2028. To achieve this, it plans to undertake strategic acquisitions and strengthen partnerships with major cloud providers. However, analysts note that Hexaware must enhance its efficiency and billing rates to remain competitive with larger firms in the industry. Hexaware is incorporating AI into its services, betting on technology to remain competitive. CEO Keech emphasizes the integration of AI in everyday operations to drive revenue. Despite its rapid growth, Hexaware faces scrutiny as a newly public company and must navigate the complexities of the global IT market to sustain its trajectory.