MIRA
INFORM REPORT
|
Report Date : |
26.07.2014 |
IDENTIFICATION DETAILS
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Name : |
HEXAWARE TECHNOLOGIES LIMITED |
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Registered
Office : |
152, |
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Country : |
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Financials (as
on) : |
31.12.2013 |
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Date of
Incorporation : |
20.11.1992 |
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Com. Reg. No.: |
11-069662 |
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Capital
Investment / Paid-up Capital : |
Rs. 599.750
Millions |
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CIN No.: [Company Identification
No.] |
L72900MH1992PLC069662 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in information technology consulting,
software development and business process management. |
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No. of Employees
: |
8854 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 35500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having a good track record.
Financial position of the company is strong. Liquidity position is good.
Performance capability is high. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. In view of experience promoters, the company can be considered for
normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a second
straight year of sub-5 % growth – the worst slowdown in more than a quarter of
a century. The data was below an official estimate of 4.9 % annual growth and
compared with 4.5 % in the last fiscal year. However, the current account
deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product,
in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A
sharp fall in gold imports due to restrictions on overseas purchases and muted
import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
[CONTACT NO.: 91-22-67919595]
LOCATIONS
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Registered Office/ Offshore Development Center 1 : |
152, Millenium Business Park, Sector 3rd ‘A’ Block, TTC
Industrial Area Mahape, Navi Mumbai – 400710, Maharashtra, India |
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Tel. No.: |
91-22-67919595/ 41599595 |
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Fax No.: |
91-22-67919500/ 41599500 |
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E-Mail : |
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Website : |
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Corporate Office : |
96-97, Mittal Chambers, Nariman Point, Mumbai – 400021, |
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Tel. No.: |
91-22-66542682/ 83 |
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Fax No.: |
91-22-22872939 |
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Offshore Center 2 : |
1, Millennium Business
Park, Sector III, TTC Industrial Area, Mahape, Navi Mumbai – 400710,
Maharashtra, India |
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Offshore Center 3 : |
157, Millennium
Business Park, Sector III, TTC Industrial Area, Mahape, Navi Mumbai – 400710,
Maharashtra, India |
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Offshore Center 4 : |
SIPCOT IT Park, Navalur Post, Siruseri, Chennai – 603103, Tamilnadu,
India |
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Offshore Center 5 : |
4th
Floor and 5th Floor, Block 1.5 SEZ, Embassy Techzone, Plot No.3,
Rajiv Gandhi IT Park, Phase II, Village Murunji, Taluka Mulshi, Hinjewadi
(SEZ), Pune – 411057, Maharashtra, India |
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Offshore Center 6 : |
Prestige Pegasus, No. 14 and 19, Next to Total Mall,
Sarjapura Road, Bengaluru – 560034, Karnataka, India |
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Branch Offices : |
Located at: ·
Navi Mumbai ·
Chennai ·
Pune ·
Nagpur ·
Bangalore ·
Coimbatore |
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Overseas Offices : |
Located at: ·
Europe 1)
United Kingdom 2)
Netherlands 3)
Belgium 4)
Germany 5)
France 6)
Geneva 7)
Austria 8)
Spain 9)
Hungary ·
Asia 1)
Qatar 2)
Dubai 3)
Saudi Arabia 4)
Mumbai 5)
Pune 6)
Nagpur 7)
Bengaluru 8)
Chennai 9)
Coimbatore 10)
Japan 11)
Malaysia 12)
Singapore 13)
Hong Kong 14)
Australia 15)
New Zealand ·
North America 1)
Boston 2)
Manhatten, NY 3)
New Jersey 4)
Chicago 5)
Atlanta 6)
Texas 7)
California 8)
Seattle 9)
Montreal 10)
Mexico (Saltillo) ·
South
America 1)
Brazil |
DIRECTORS
AS ON 31.12.2013
|
Name : |
Mr. Atul K. Nishar |
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Designation : |
Non-Executive Chairman |
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Name : |
Mr. P. R. Chandrasekar |
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Designation : |
Global Chief Executive Officer and Vice Chairman |
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Date of Birth/ Age : |
28.09.1955 |
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Qualification : |
Mechanical Engineering
from Indian Institute of Technology, Madras (IITM), MBA from University of
Bombay. |
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Experience in specific functional area : |
Wide experience
in Information Technology Services. |
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Date of Appointment : |
02.06.2008 |
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\ |
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Name : |
Mr. R. V. Ramanan |
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Designation : |
Executive Director and President Global Delivery |
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Name : |
Mr. Bharat Shah |
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Designation : |
Independent Director |
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Date of Birth/ Age : |
18.02.1947 |
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Qualification : |
Bachelors in Science (B. Sc.) degree from the University of Mumbai in
Applied Chemistry with special reference to Metal Finishing from Borough
Polytechnic, London. |
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Experience in
specific functional area : |
Experience in Custody and Depository, Retail, HR, Private Banking,
Infrastructure and Merchant Services in Banking Sector |
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Date of Appointment : |
29.07.2008 |
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Name : |
Mr. Jimmy Mahtani |
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Designation : |
Non–Executive Director |
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Name : |
Mr. Kosmas Kalliarekos |
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Designation : |
Non–Executive Director |
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Name : |
Mr. Dileep C Choksi |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mrs. Gunjan Methi |
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Designation : |
Company Secretary |
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Name : |
Mr. Rajiv Pant |
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Designation : |
President – North America Operations |
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Name : |
Mr. Amrinder Singh |
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Designation : |
Senior Vice President – Europe Sales |
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Name : |
Mr. Uday C Reddy |
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Designation : |
Senior Vice President APAC – Sales |
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Name : |
Mr. Ramanan Seshadri |
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Designation : |
Executive Vice
President, Global Head of the Healthcare and Insurance vertical |
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Name : |
Mr. Madhu Kumar |
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Designation : |
Executive Vice
President and Global Head – Travel and Transportation |
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Name : |
Mr. Ravi Vaidyanathan |
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Designation : |
Executive Vice
President and Global Head – Banking and Financial Services |
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Name : |
Mr. Chinmoy Banerjee |
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Designation : |
Senior Vice President and Head - BPM |
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Name : |
Mr. Satya Samal |
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Designation : |
Senior Vice
President and Global Head – Manufacturing and Retail |
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Name : |
Mr. N Nataraj |
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Designation : |
Chief
Information Officer and Global Head – Infrastructure Management Services |
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Name : |
Mr. Moorthi Chokkanathan |
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Designation : |
President and Global Head – Enterprise Solutions |
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Name : |
Mr. Anand Moorthy |
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Designation : |
Executive Vice
President and Global Head – Quality Assurance and Testing Services |
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Name : |
Mr. Rajesh Kanani |
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Designation : |
Chief Financial Officer |
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Name : |
Mrs. Amberin Memon |
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Designation : |
Chief People Officer |
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Name : |
Mr. Sreenivas V |
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Designation : |
Chief Strategy Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding
of Promoter and Promoter Group |
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|
191699126 |
68.70 |
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|
191699126 |
68.70 |
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Total
shareholding of Promoter and Promoter Group (A) |
191699126 |
68.70 |
|
(B) Public
Shareholding |
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|
6241910 |
2.24 |
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|
51263 |
0.02 |
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|
261320 |
0.09 |
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|
47086149 |
16.87 |
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|
14500 |
0.01 |
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|
14500 |
0.01 |
|
|
53655142 |
19.23 |
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|
|
|
|
|
5946203 |
2.13 |
|
|
|
|
|
|
22740751 |
8.15 |
|
|
3065944 |
1.10 |
|
|
1926446 |
0.69 |
|
|
1918936 |
0.69 |
|
|
10 |
0.00 |
|
|
7500 |
0.00 |
|
|
33679344 |
12.07 |
|
Total Public
shareholding (B) |
87334486 |
31.30 |
|
Total (A)+(B) |
279033612 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
21111400 |
0.00 |
|
|
179560 |
0.00 |
|
|
21290960 |
0.00 |
|
Total (A)+(B)+(C) |
300324572 |
100.00 |
(1) Indian
Bodies Corporate
Trusts
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in information technology consulting,
software development and business process management. |
GENERAL INFORMATION
|
No. of Employees : |
8854 (Approximately) |
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Bankers : |
Not Available |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name : |
Deloitte Haskins and Sells LLP Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Internal Auditors : |
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Name : |
KPMG |
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Address : |
Mumbai, Maharashtra, India |
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Ultimate Holding Company and its
Subsidiaries : |
· Baring Private Equity Asia GP V. LP, Cayman Island The Baring Asia Private Equity Fund V, LP, Cayman Island Baring Private Equity Asia V Maritius Holidng (4) Limited,
Mauritius Parel Investment Holdings Limited, Mauritius |
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Holding Company : |
HT Global IT
Solutions Holdings Limited, Mauritius |
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Subsidiaries : |
· Hexaware Technologies Inc., United States of America Hexaware Technologies UK Limited, United Kingdom Hexaware Technologies Asia Pacific Pte. Limited, Singapore Hexaware Technologies GmbH., Germany Hexaware Technologies Canada Limited, Canada Caliber Point Business Solutions Limited, India FocusFrame Europe BV, Netherland Hexaware Technologies, Mexico S. De. R.L. De. C.V., Mexico Risk Technology International Limited, India Hexaware Technologies DO Brazil Limited, Brazil #, Brazil Rampran Infotech Limited *, India |
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Other Related Party : |
Hexaware
Technologies Employee Stock Option Trust |
NOTE:
* Company name
striked off from Registrar of Company w.e.f.23rd May 2013.
# Subsidiary of Hexaware
Technologies UK Limited
CAPITAL STRUCTURE
AFTER 25.04.2014
Authorised Capital : Rs. 2213.100 Millions
Issued, Subscribed & Paid-up Capital : Rs. 600.649
Millions
AS ON 31.12.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
325,000,000 |
Equity Shares |
Rs. 2/- each |
Rs. 650.000 Millions |
|
1,100,000 |
Series “A” Preference shares (Authorised
Preference share capital can be either cumulative or non-cumulative with a
power to the Company to convert the same into equity shares at any time) |
Rs. 1421/- each |
Rs. 1563.100 Millions |
|
|
|
|
|
|
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Total |
|
Rs. 2213.100
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
299,875,947 |
Equity Shares |
Rs. 2/- each |
Rs. 599.750
Millions |
|
|
|
|
|
Reconciliation of
number of shares
|
Particulars |
As at 31st
December 2013 |
|
|
|
Numbers |
Amount |
|
Shares outstanding at the beginning of the year |
296,544,791 |
593.090 |
|
Shares Issued during the year |
3,331,156 |
6.660 |
|
Shares outstanding at the end of the year |
299,875,947 |
599.750 |
Details of shares
held by shareholders holding more than 5% shares
|
Name of
Shareholders |
As at 31st
December 2013 |
|
|
|
Nos. of Shares held |
% of holding |
|
HT Global IT Solutions Holdings Limited (Holding company) |
164,323,724 |
54.80 |
|
Parel Investment
Holdings Limited (Subsidiary of ultimate holding company, Baring Private
Equity Asia GP V, LP.) |
27,288,327 |
9.10 |
|
J P Morgan Chase Bank, NA |
21,111,400 |
7.04 |
Shares allotted as fully paid up by way of
bonus shares during five years preceding the period end
The Company allotted
145,545,781 equity shares as fully paid up bonus shares by utilisation of
Securities premium account on 2nd March, 2011 pursuant to shareholder’s
resolution passed in Extra Ordinary General Meeting held on 15th February,
2011.
Rights, preferences and restrictions
attached to equity shares
The Company has one
class of equity shares having a par value of Rs. 2 each. Each shareholder is
eligible for one vote per share held. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the remaining
assets of the Company after distribution of all preferential amounts, in
proportion to their shareholding.
Shares reserved for issue under options
The Company has
granted employee stock options under ESOP 2002, 2007 and 2008 scheme. Each
option entitles the holder to one equity share of Rs.2 each. 2,840,525
(6,452,576) options were outstanding as on 31st December 2013.
Share application money pending allotment
Share application
money received pending allotment is Rs.0.860 millions (Rs.0.380 millions) as at
31st December, 2013. 44,000 (30,193) shares are being allotted subsequent to
the year end. The Company has sufficient authorised capital to cover the
allotment of these shares.
The Board of
Directors, at its meeting held on 7th February, 2014 has declared an interim
dividend of Rs. 7.50/- and recommended final dividend of Re.1.00/- per equity
share.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
599.750 |
593.090 |
586.720 |
|
(b) Reserves & Surplus |
8285.520 |
9253.030 |
7998.700 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.860 |
0.380 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
8886.130 |
9846.500 |
8585.420 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
245.360 |
101.790 |
0.000 |
|
(c) Other long
term liabilities |
0.170 |
76.230 |
122.970 |
|
(d) long-term
provisions |
171.260 |
232.160 |
186.640 |
|
Total Non-current
Liabilities (3) |
416.790 |
410.180 |
309.610 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b)
Trade payables |
1489.840 |
1385.820 |
1215.990 |
|
(c)
Other current liabilities |
677.670 |
847.700 |
1398.450 |
|
(d) Short-term
provisions |
3183.060 |
633.910 |
890.590 |
|
Total Current
Liabilities (4) |
5350.570 |
2867.430 |
3505.030 |
|
|
|
|
|
|
TOTAL |
14653.490 |
13124.110 |
12400.060 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2954.720 |
2441.280 |
2084.250 |
|
(ii)
Intangible Assets |
64.220 |
70.980 |
40.260 |
|
(iii)
Capital work-in-progress |
212.470 |
756.760 |
798.670 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
2009.520 |
2010.020 |
2069.670 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1205.630 |
1007.490 |
820.130 |
|
(e) Other
Non-current assets |
140.500 |
163.380 |
651.830 |
|
Total Non-Current
Assets |
6587.060 |
6449.910 |
6464.810 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
3331.670 |
2349.830 |
228.770 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade
receivables |
2387.950 |
2521.070 |
1964.290 |
|
(d) Cash
and cash equivalents |
1474.880 |
1103.170 |
2907.290 |
|
(e)
Short-term loans and advances |
518.850 |
598.170 |
625.720 |
|
(f)
Other current assets |
353.080 |
101.960 |
209.180 |
|
Total Current
Assets |
8066.430 |
6674.200 |
5935.250 |
|
|
|
|
|
|
TOTAL |
14653.490 |
13124.110 |
12400.060 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
10199.540 |
9124.740 |
6785.800 |
|
|
|
Other Income |
333.230 |
458.520 |
449.370 |
|
|
|
TOTAL (A) |
10532.770 |
9583.260 |
7235.170 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Software and development expenses |
525.330 |
583.600 |
607.000 |
|
|
|
Employee benefits expenses |
4400.040 |
4328.830 |
3335.340 |
|
|
|
Operation and other expenses |
954.050 |
917.060 |
778.730 |
|
|
|
Exchange rate difference (net) |
241.430 |
71.130 |
(233.310) |
|
|
|
TOTAL (B) |
6120.850 |
5900.620 |
4487.760 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4411.920 |
3682.640 |
2747.410 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1.350 |
1.050 |
14.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4410.570 |
3681.590 |
2733.010 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
310.300 |
269.450 |
188.970 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4100.270 |
3412.140 |
2544.040 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
760.610 |
556.110 |
224.230 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3339.660 |
2856.030 |
2319.810 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Income from software solutions and consulting services |
9977.960 |
8871.150 |
6564.610 |
|
|
|
Interest Income |
0.460 |
0.200 |
0.240 |
|
|
TOTAL EARNINGS |
9978.420 |
8871.350 |
6564.850 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
47.450 |
102.300 |
108.430 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic
|
11.19 |
9.66 |
7.94 |
|
|
|
Diluted
|
11.09 |
9.50 |
7.75 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2014 |
30.06.2014 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Net Sales |
2533.100 |
2379.800 |
|
Total Expenditure |
1733.600 |
1569.200 |
|
PBIDT (Excl OI) |
799.400 |
810.600 |
|
Other Income |
453.400 |
85.600 |
|
Operating Profit |
1252.800 |
896.200 |
|
Interest |
0.200 |
0.000 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
1252.600 |
896.200 |
|
Depreciation |
87.600 |
88.300 |
|
Profit Before Tax |
1165.000 |
807.900 |
|
Tax |
204.600 |
154.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
960.400 |
653.700 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
960.400 |
653.700 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
PAT / Total Income |
(%) |
31.71 |
29.80 |
32.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
40.20 |
37.39 |
37.49 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
32.98 |
32.94 |
26.69 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.46 |
0.35 |
0.30 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.51 |
2.33 |
1.69 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
586.720 |
593.090 |
599.750 |
|
Reserves & Surplus |
7998.700 |
9253.030 |
8285.520 |
|
Share Application money pending allotment |
0.000 |
0.380 |
0.860 |
|
Net
worth |
8585.420 |
9846.500 |
8886.130 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
6785.800 |
9124.740 |
10199.540 |
|
|
|
34.468 |
11.779 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
6785.800 |
9124.740 |
10199.540 |
|
Profit |
2319.810 |
2856.030 |
3339.660 |
|
|
34.19% |
31.30% |
32.74% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
No |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
90166644 |
30/11/1999 |
50,000,000.00 |
BANQUE NATIONALE DE PARIS |
FRENCH BANK BUILDING 62 HOMJI STREET FORT, MUMBAI, MAHARASHTRA - 400001, INDIA |
- |
|
2 |
90166567 |
05/03/1998 |
3,240,200.00 |
CANARA BANK |
SAKINAKA, MUMBAI, KARNATAKA - 400072, INDIA |
- |
|
3 |
90165950 |
10/08/1987 |
500,000.00 |
CANARA BANK |
SAKINAKA, MUMBAI, WEST BENGAL - 400072, INDIA |
- |
BACKGROUND
Subject is a public limited company domiciled in India and
incorporated under the provisions of the Companies Act 1956, applicable in
India. The Company is engaged in information technology consulting, software
development and business process management. Hexaware provides multiple service
offerings to its clients across various industries comprising travel,
transportation, hospitality, logistics, banking, financial services, insurance,
healthcare, manufacturing and services. The various service offerings comprise
application development and management, enterprise package solutions,
infrastructure management, business intelligence and analytics, business
process, quality assurance and independent testing.
RESULTS OF
OPERATIONS
GLOBAL OPERATIONS
Income from operations increased to Rs.22,853.480 millions in 2013 from
Rs.19,481.780 millions in 2012, growth of 17.31%. The growth in Dollar terms
was 6.4%, reaching USD 387.79 milliosn Growth was driven largely by volume
increase, aided by increased realized bill rates.
Profit from Operations (profit before Exchange Rate Difference,
Interest, Other Income and Provision for Taxation) was at Rs.4,736.260 millions
in 2013 as against Rs.3,716.230 millions in 2012, growth of 27.45%. Profitability
growth was driven by significant SG&A leverage, improved cost efficiency,
0.7% shift in favour of offshore, higher realized bill rates as well as
currency benefits. Profit after Tax stood at Rs.3,791.350 millions in 2013 as
compared to a profit of Rs.3,276.470 millions in 2012, growth of 15.71%. PAT
margins were at 16.59% in Rupee terms.
Some of the major
achievements of the Company in the year 2013 were:
During the year 2013, 48 new clients were added. This took the total
number of active clients to 233, up from 218 in December 2012.
During 2013, the number of clients registering annual revenues in excess
of USD 20 million each increased from 3 to 4 ; 5 clients in the USD 10 million
- USD 20 million range, 7 clients in the USD 5 million - USD 10 million range,
39 clients in the USD 1 million - USD 5 million category.
The Company has achieved two new milestones in Quarter 4 of 2013. The
Company has for the first time crossed $ 100 million quarterly revenue and
Rs.1000.000 Crores quarterly PAT
SIGNIFICANT
DEVELOPMENTS DURING CY 2013
CHANGE IN
PROMOTERS OF THE COMPANY
HT Global IT Solutions Holdings Limited has become the new promoter of
the company along with Parel Investment Holdings Limited through acquisition of
shares under the Share Purchase Agreements from the erstwhile promoters and an
investor and pursuant to the open offer under SEBI (SAST) Regulations. The
promoters hold 70.87% of the share capital of the company as on March 21, 2014.
Other
developments:
In 2013 many significant achievements have been recorded in various
quarters. The company has strengthened its domain capability, increased breadth
and depth of its service lines, have added significantly to the sales field
organization and has made new investments to expand its focus on management
program. The Company signed a deal with revenue expected at USD 30 million for
a period of three years, with an existing US based Fortune 500 Corporate to
cater to multiple business users across different technology platforms.
Hexaware also launched a new Manufacturing Vertical to add to their
growing presence in Banking and Financial Services, Global Travel and
Transportation as well as Healthcare and Insurance.
Customer centricity is a major focus area at the Company. In the last
year, the Company launched several new service offerings to deliver value to
its customers.
INDIA OPERATIONS
In the year 2013, the revenue of the standalone legal entity increased
by 11.78% to Rs.10,199.540 millions. This is in comparison with revenue of standalone
legal entity at Rs.9,124.740 millions in the previous year. The net profit
after tax was Rs.3,339.660 millions as compared to a profit of Rs.2,856.030
millions in 2012, an increase of 16.93%.
AWARDS
The company won
the following awards in 2013:
Hexaware was the winner of ‘Special Commendation’ for the Golden Peacock
Award for Excellence in Corporate Governance, 2013.
Hexaware was the winner of the ‘IT Excellence’ Award conferred by Vmware
in association with CNBC.
Hexaware won the ‘EMC Transformers’ Award conferred by the IDG group.
Hexaware’s Annual Report for the year 2012 received Plaque award for
excellence in financial reporting from Institute of Chartered Accountants of
India.
Hexaware has been assessed at Level 5 of CMMI Multi Model Version 1.3
for Development and Services recently. Less than 10 companies in the world are
appraised at Level 5 using the Multi-model approach.
Caliber Point Business Solutions Limited, Hexaware’s wholly owned
subsidiary, won the ‘Health Insurance BPO Provider’ Award at the BPO excellence
awards 2012-13.
Caliber Point Business Solutions Limited won the ‘Best Outsourcing
Service Provider’ Award at the Asian Outsourcing Excellence Awards in 2013.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
GLOBAL ECONOMY
The global economy continued to witness yet another sluggish year during
2013. Despite global activity and world trade picking up in the second half of
2013, the global economy registered a growth of 3% compared to 3.1% in 2012.
The growth of the advanced economies slowed down to 1.3% in 2013 compared to
1.4% in the previous year. Emerging economies which account for the bulk of
global growth, also witnessed a decline in growth from 4.9% in 2012 to 4.7% in
2013.
IT INDUSTRY
OVERVIEW
GLOBAL IT INDUSTRY
In today’s dynamic world, where the rate of obsolesce is rising rapidly,
it is becoming crucial for companies to invest in innovation and technology. As
a result, investment in Information Technology is growing rapidly across the
world. The global IT spend during 2013 increased by 0.4% to USD 3.66 trillion
from USD 3.62 trillion in 2012 while the global IT outsourcing has increased by
2.8% to USD 288 billion in 2013 from USD 280 billion in the previous year.
Going ahead, the worldwide IT spending in 2014 is expected to increase
by 3.1% to USD 3.7 trillion compared to USD 3.6 trillion in 2013. This growth
will be driven by increase in Enterprise software spending which is expected to
increase to USD 320 billion in 2014.
INDIAN IT INDUSTRY
The Indian IT and ITeS industry has become the growth engine for the
economy, contributing substantially to the GDP, urban employment and exports.
The industry’s share (including hardware) in the global market stands at 7%, of
which 4% is contributed by the IT segment and 2-3% by the ITeS space.
Despite challenges in the global market during the year, the Indian
IT-BPM industry sustained its growth trajectory and is expected to clock export
revenues of USD 75.8 billion in 2012-13, representing a growth rate of 10.2%
compared to USD 68.8 billion in 2011-12.
OUTLOOK
The increase in global IT spending and opportunities created through
adoption of new technologies such as Social networks, Mobile applications,
Analytics and the Cloud (SMAC) will propel the growth of the Indian IT-BPM
industry in 2014. Export revenues from the industry is expected to increase by
12-14% to USD 87 billion and domestic revenues is expected to grow at a rate of
13-15% to reach Rs.1200 billion. Changing business models, emergence of new
technologies, buyer segmentation and solutions for emerging markets will help
India retain its position as the global sourcing leader and an emerging
innovation hub.
BUSINESS OVERVIEW
Hexaware is a leading global provider of IT and BPM services and
consulting. The Company focuses on key domains such as Banking and Financial
Services, Insurance, Travel, Transportation, Logistics, Life Sciences and
Healthcare. Hexaware focuses on delivering business results and leveraging
technology solutions by specializing in Business Intelligence and Analytics,
Enterprise Applications, Quality Assurance and Testing, Remote Infrastructure
Management Services and Application Development and Maintenance.
BUSINESS
PERFORMANCE
Despite the sluggish growth of the Indian and global economy and
marginal growth in global IT spends, Hexaware has been able to maintain its
growth momentum. The company grew by 6.4% to USD 387.8 million in dollar terms
and by 17.3% to Rs.22850.000 millions in rupee terms. The EBITDA margin in
Rupee terms increased by 170 bps to 22.4% in 2013 from 20.7% in 2012 and the
net profit increased by 15.7% to Rs.3790.000 millions.
Further, the company achieved two new milestones during the fourth
quarter. It crossed USD 100 million in quarterly revenue and Rs.1000.000 millions
in quarterly Net Profit in the fourth quarter of CY 2013.
CONTINGENT
LIABILITIES [AS ON 31.12.2013]:
a) Claims not acknowledged as debt to Rs. 28.140 millions (Previous Year Rs. 28.140 millions).
b) Claims for taxes on income:
i. Where Company is in appeal
Income tax demands of Rs.112.380 millions have been raised in respect of assessments completed during the year, arising from off-setting tax losses against income of exempt units. The Company has appealed against the orders and based on merits, expects favourable outcome. Hence no provision against such demand is considered necessary.
ii. Others:
During the previous year, the CIT (A) had passed an order in favour of the Company against demand of Rs. 23.790 millions raised by the Assessing officer for AY 2008-09, which had arisen mainly due to disallowance of foreign exchange loss as business expenses. Against this, the income tax department has filed an appeal with ITAT during the year and the matter is in process.
FIXED ASSETS:
Tangible assets
· Land-Freehold
Land-Leasehold
Buildings
Plant
and Machinery
Office
Equipments
Furniture
and Fixtures
Vehicles
Intangible assets
·
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.14 |
|
|
1 |
Rs. 102.22 |
|
Euro |
1 |
Rs. 81.02 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
69 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.