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Hexaware Technologies

NSEI:HEXAWARE
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HEXAWARE
NSEI
₹100B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

Hexaware Technologies Limited provides information technology consulting, software development, and business process management services worldwide. The last earnings update was 78 days ago. More info.


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HEXAWARE Share Price and Events
7 Day Returns
-0.1%
NSEI:HEXAWARE
2.6%
IN IT
1.1%
IN Market
1 Year Returns
-22.6%
NSEI:HEXAWARE
25.3%
IN IT
-0.9%
IN Market
HEXAWARE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hexaware Technologies (HEXAWARE) -0.1% -1.3% 3.8% -22.6% 34.2% 97.9%
IN IT 2.6% 4.7% 8.9% 25.3% 48.1% 80%
IN Market 1.1% 1.8% 5.7% -0.9% 41% 72.2%
1 Year Return vs Industry and Market
  • HEXAWARE underperformed the IT industry which returned 25.3% over the past year.
  • HEXAWARE underperformed the Market in India which returned -0.9% over the past year.
Price Volatility
HEXAWARE
Industry
5yr Volatility vs Market

Value

 Is Hexaware Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hexaware Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hexaware Technologies.

NSEI:HEXAWARE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 16.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:HEXAWARE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 35%) (0%))
1.036
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.036 * 8.6%)
16.46%

Discounted Cash Flow Calculation for NSEI:HEXAWARE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hexaware Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:HEXAWARE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 16.46%)
2019 5,316.77 Analyst x12 4,565.17
2020 6,003.25 Analyst x13 4,425.95
2021 6,546.30 Analyst x4 4,144.05
2022 7,091.42 Est @ 8.33% 3,854.54
2023 7,665.40 Est @ 8.09% 3,577.53
2024 8,273.32 Est @ 7.93% 3,315.42
2025 8,920.01 Est @ 7.82% 3,069.26
2026 9,610.12 Est @ 7.74% 2,839.27
2027 10,348.23 Est @ 7.68% 2,625.15
2028 11,138.98 Est @ 7.64% 2,426.30
Present value of next 10 years cash flows ₹34,842.66
NSEI:HEXAWARE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹11,138.98 × (1 + 7.55%) ÷ (16.46% – 7.55%)
₹134,401.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹134,401.25 ÷ (1 + 16.46%)10
₹29,275.31
NSEI:HEXAWARE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹34,842.66 + ₹29,275.31
₹64,117.97
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹64,117.97 / 297.70
₹215.38
NSEI:HEXAWARE Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹215.38
Current discount Discount to share price of ₹337.40
= -1 x (₹337.40 - ₹215.38) / ₹215.38
-56.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hexaware Technologies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hexaware Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hexaware Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:HEXAWARE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹19.65
NSEI:HEXAWARE Share Price ** NSEI (2019-04-18) in INR ₹337.4
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 16.19x
India Market PE Ratio Median Figure of 2,736 Publicly-Listed Companies 16.34x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hexaware Technologies.

NSEI:HEXAWARE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:HEXAWARE Share Price ÷ EPS (both in INR)

= 337.4 ÷ 19.65

17.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hexaware Technologies is overvalued based on earnings compared to the IN IT industry average.
  • Hexaware Technologies is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Hexaware Technologies's expected growth come at a high price?
Raw Data
NSEI:HEXAWARE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
11.9%per year
India IT Industry PEG Ratio Median Figure of 21 Publicly-Listed IT Companies 1.32x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:HEXAWARE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.17x ÷ 11.9%

1.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hexaware Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hexaware Technologies's assets?
Raw Data
NSEI:HEXAWARE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹80.44
NSEI:HEXAWARE Share Price * NSEI (2019-04-18) in INR ₹337.4
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.36x
India Market PB Ratio Median Figure of 3,627 Publicly-Listed Companies 1.11x
NSEI:HEXAWARE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:HEXAWARE Share Price ÷ Book Value per Share (both in INR)

= 337.4 ÷ 80.44

4.19x

* Primary Listing of Hexaware Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hexaware Technologies is overvalued based on assets compared to the IN IT industry average.
X
Value checks
We assess Hexaware Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Hexaware Technologies has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hexaware Technologies expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hexaware Technologies expected to grow at an attractive rate?
  • Hexaware Technologies's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Hexaware Technologies's earnings growth is positive but not above the India market average.
  • Hexaware Technologies's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:HEXAWARE Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:HEXAWARE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 11.9%
NSEI:HEXAWARE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 12.5%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.6%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:HEXAWARE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:HEXAWARE Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 68,112 7,910 8,453 6
2020-12-31 60,935 7,171 7,362 15
2019-12-31 54,131 6,477 6,469 17
NSEI:HEXAWARE Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 46,478 5,487 5,835
2018-09-30 44,002 4,582 5,810
2018-06-30 41,836 4,766 5,511
2018-03-31 40,305 4,727 5,200
2017-12-31 39,420 4,762 4,995
2017-09-30 38,781 5,378 5,016
2017-06-30 37,891 5,678 4,737
2017-03-31 36,752 5,550 4,492
2016-12-31 35,349 4,730 4,192
2016-09-30 34,144 4,694 3,955
2016-06-30 33,289 4,374 3,928
2016-03-31 32,334 4,266 3,937

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hexaware Technologies's earnings are expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).
  • Hexaware Technologies's revenue is expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:HEXAWARE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Hexaware Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:HEXAWARE Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 27.16 31.00 23.30 7.00
2020-12-31 24.23 27.00 21.20 14.00
2019-12-31 21.30 23.00 19.30 15.00
NSEI:HEXAWARE Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 19.65
2018-09-30 19.57
2018-06-30 18.57
2018-03-31 17.52
2017-12-31 16.79
2017-09-30 16.79
2017-06-30 15.79
2017-03-31 14.91
2016-12-31 13.89
2016-09-30 13.11
2016-06-30 13.02
2016-03-31 13.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hexaware Technologies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Hexaware Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hexaware Technologies has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hexaware Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hexaware Technologies's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hexaware Technologies's year on year earnings growth rate has been positive over the past 5 years.
  • Hexaware Technologies's 1-year earnings growth exceeds its 5-year average (16.8% vs 11.5%)
  • Hexaware Technologies's earnings growth has not exceeded the IN IT industry average in the past year (16.8% vs 24.5%).
Earnings and Revenue History
Hexaware Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hexaware Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:HEXAWARE Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 46,477.62 5,834.63 3,563.22
2018-09-30 44,001.67 5,809.84 3,408.17
2018-06-30 41,836.14 5,511.09 3,448.50
2018-03-31 40,304.67 5,199.58 3,365.66
2017-12-31 39,420.14 4,995.26 3,338.50
2017-09-30 38,780.61 5,015.69 3,315.89
2017-06-30 37,891.38 4,736.52 3,110.80
2017-03-31 36,752.21 4,492.18 3,084.90
2016-12-31 35,348.99 4,191.62 2,960.56
2016-09-30 34,144.49 3,955.14 2,848.20
2016-06-30 33,288.70 3,927.85 2,757.09
2016-03-31 32,334.02 3,936.78 2,607.70
2015-12-31 31,266.16 3,932.10 2,498.45
2015-09-30 30,179.91 3,811.10 2,387.83
2015-06-30 28,700.37 3,555.14 2,366.11
2015-03-31 27,062.24 3,332.02 2,160.70
2014-12-31 25,816.77 3,201.52 2,273.83
2014-09-30 24,898.89 3,361.19 2,030.30
2014-06-30 24,403.27 3,488.23 1,887.28
2014-03-31 23,665.43 3,701.60 1,709.22
2013-12-31 22,853.48 3,791.35 1,693.72
2013-09-30 21,676.19 3,420.87 1,707.39
2013-06-30 20,540.82 3,274.36 1,652.49
2013-03-31 20,175.71 3,185.60 1,652.05
2012-12-31 19,481.78 3,276.47 1,559.26
2012-09-30 18,777.81 3,497.16 1,497.39
2012-06-30 17,362.65 3,303.45 1,439.69

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hexaware Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Hexaware Technologies used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
  • Hexaware Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hexaware Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hexaware Technologies has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hexaware Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hexaware Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hexaware Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hexaware Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hexaware Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Hexaware Technologies has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hexaware Technologies Company Filings, last reported 3 months ago.

NSEI:HEXAWARE Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 23,918.65 0.00 8,151.83
2018-09-30 23,324.03 0.00 7,102.35
2018-06-30 22,378.58 0.00 7,242.24
2018-03-31 21,181.90 0.00 5,945.01
2017-12-31 20,072.75 0.00 5,336.60
2017-09-30 19,146.52 0.00 4,435.77
2017-06-30 17,985.41 0.00 4,123.47
2017-03-31 16,950.41 0.00 3,062.13
2016-12-31 17,409.15 0.00 4,314.88
2016-09-30 16,132.18 0.00 3,262.09
2016-06-30 15,184.21 0.00 3,013.07
2016-03-31 14,472.43 0.00 2,917.28
2015-12-31 14,332.06 0.00 4,273.79
2015-09-30 14,115.43 0.00 3,579.42
2015-06-30 13,711.82 0.00 3,789.65
2015-03-31 13,278.98 0.00 3,290.35
2014-12-31 12,906.00 0.00 4,715.98
2014-09-30 12,711.54 0.00 3,968.42
2014-06-30 12,552.98 0.00 3,774.13
2014-03-31 12,164.12 0.00 4,233.79
2013-12-31 11,992.47 0.00 6,388.58
2013-09-30 13,479.70 0.00 4,708.68
2013-06-30 12,630.89 0.00 5,546.73
2013-03-31 12,731.94 0.00 5,334.75
2012-12-31 12,038.57 0.00 4,318.84
2012-09-30 11,890.41 0.00 3,882.69
2012-06-30 10,809.54 0.00 4,068.59
  • Hexaware Technologies has no debt.
  • Hexaware Technologies has not taken on any debt in the past 5 years.
  • Hexaware Technologies has no debt, it does not need to be covered by operating cash flow.
  • Hexaware Technologies has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Hexaware Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hexaware Technologies has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hexaware Technologies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.96%
Current annual income from Hexaware Technologies dividends. Estimated to be 2.9% next year.
If you bought ₹2,000 of Hexaware Technologies shares you are expected to receive ₹59 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hexaware Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Hexaware Technologies's dividend is above the markets top 25% of dividend payers in India (1.94%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:HEXAWARE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:HEXAWARE Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 11.93 7.00
2020-12-31 9.60 16.00
2019-12-31 9.02 15.00
NSEI:HEXAWARE Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-01-30 10.000 2.866
2018-10-24 10.000 3.103
2018-07-24 10.000 2.283
2018-05-03 4.000 0.895
2018-02-07 4.000 1.054
2017-02-07 5.500 2.079
2016-08-16 8.650 4.338
2016-02-04 8.650 3.742
2015-02-10 9.450 3.644
2014-04-02 11.100 6.410
2014-02-10 11.100 7.283
2014-02-07 11.100 7.860
2013-02-11 5.400 5.181
2012-11-01 4.800 5.195
2012-07-31 6.000 5.010
2012-04-27 6.000 4.943
2012-02-02 6.000 5.220
2011-10-20 4.000 4.812
2011-07-27 4.000 5.016
2011-04-28 2.000 2.888
2011-01-11 1.000 1.693
2010-07-14 0.700 1.642
2010-02-17 0.800 2.158
2009-12-31 0.800 1.886
2009-07-29 0.600 1.450
2009-04-20 0.500 2.366

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hexaware Technologies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Hexaware Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hexaware Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hexaware Technologies has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hexaware Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Keech Srikrishna
COMPENSATION ₹53,600,000
AGE 48
TENURE AS CEO 4.8 years
CEO Bio

Mr. R. Srikrishna, also known as Keech, has been the Chief Executive Officer of Hexaware Technologies Limited since July 28, 2014. Mr. Srikrishna served as Head of Global Sales - Infrastructure Services Division ( HCLT ISD ) and Executive Vice President at HCL Technologies Ltd. until July 2014. Mr. Srikrishna headed Account Management and New Services Development for HCLT ISD. He has over 20 years of progressive experience in global information services and technology. He has significant business and technology expertise across strategy, acquisition, service excellence, skill building and other strategic areas. In his 16 year long, much decorated stint at HCLT ISD, he has conceptualized and launched many of HCLT ISD’s business practices from the very scratch. Amongst the biggest of them was the conceptualization and execution of Remote Infrastructure Management Services that would eventually lead to the formation of a large Indian Infrastructure Outsourcing industry and HCL achieving a dominant leadership position in that industry due to Sri’s pioneering efforts. Prior to that, he formulated many similar disruptive value propositions like Satellite Communication, Web Management and Network Management Services in the 90s for HCL which were the firsts not only for it but the Indian IT Industry at large. In his pursuit of these path-breaking propositions, he and his team created many IPs for HCL with tools like ‘India Internet Index’, ‘Router Manage.com’, ‘Smart Manage’ and ‘myDashboard’. He is widely respected as one of the most formidable voices in the IT Operations space. He has been an Executive Director of Hexaware Technologies Limited since October 17, 2014. He has spoken at many prestigious Industry platforms and continues to be invited and included in the Indian & North American IT Industry’s thought leadership interventions and initiatives. Harvard Business School’s (HBS) High Potentials Leadership Program often invites him to speak at their leadership development course on behalf of HCL. He has also been a guest speaker at HBS’s General Management Program. He is a member of HCL T ISD’s ‘Executive Management Board’ and continues to be an ambassador and mentor for next gen leaders in the company. Aside from work, he is passionate about the Green cause. He leads HCL’s ProSeed initiative, which promotes the cause of bio diversity conservation and forestation. Apart from ProSeed, he also played a key architect and thought leadership role in shaping HCL’s ‘Green IT’ agenda and initiatives. In his early career, he led the cause for SPIC MACAY – a non-profit organization for promoting Indian Classical Music amongst Youth in the Indian state of Tamil Nadu and briefly, nationally. He is a ‘Green Belt’ Taekwondo pro and is a deft foot on the hockey field, having been the Captain of his college hockey team He is an electrical engineer from IIT, one of the world’s premier engineering education institutions. Mr. Srikrishna holds an Engineering Degree from Indian Institute of Technology, Madras and a Masters in Business Administration from Indian Institute of Management, Calcutta.

CEO Compensation
  • Keech's compensation has been consistent with company performance over the past year.
  • Keech's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Hexaware Technologies management team in years:

4.8
Average Tenure
54
Average Age
  • The tenure for the Hexaware Technologies management team is about average.
Management Team

Keech Srikrishna

TITLE
CEO & Executive Director
COMPENSATION
₹54M
AGE
48
TENURE
4.8 yrs

Gunjan Methi

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹3M
TENURE
9.1 yrs

Vikash Jain

TITLE
Chief Financial Officer
TENURE
0.5 yrs

C. Kumar

TITLE
Chief Technology Officer
AGE
47
TENURE
2.2 yrs

Bhagwant Bhargawe

TITLE
Head of Legal
AGE
62

Aparna Jairam

TITLE
Chief Marketing Officer

Amberin Memon

TITLE
Chief People Officer
AGE
56

K. Nayagam

TITLE
Senior VP of Global Revenue Assurance & Chief Learning Officer
AGE
54
TENURE
15.6 yrs

Srinivasan Panchapakesan

TITLE
Senior VP and Global Head of ATM Business & H&I Delivery
AGE
49
TENURE
1.6 yrs

Sriram Shankaranarayanan

TITLE
Senior Vice President
AGE
59
TENURE
6.2 yrs
Board of Directors Tenure

Average tenure and age of the Hexaware Technologies board of directors in years:

5.2
Average Tenure
59.5
Average Age
  • The tenure for the Hexaware Technologies board of directors is about average.
Board of Directors

Atul Nishar

TITLE
Non Executive Chairman
AGE
63
TENURE
5.5 yrs

Keech Srikrishna

TITLE
CEO & Executive Director
COMPENSATION
₹54M
AGE
48
TENURE
4.5 yrs

Jimmy Mahtani

TITLE
Vice Chairman
AGE
42
TENURE
2.5 yrs

Bharat Shah

TITLE
Independent Non Executive Director
COMPENSATION
₹7M
AGE
71
TENURE
10.8 yrs

Dileep Choksi

TITLE
Independent Non Executive Director
COMPENSATION
₹7M
AGE
69
TENURE
5.5 yrs

P. Chandrasekar

TITLE
Independent Director
COMPENSATION
₹6M
AGE
63
TENURE
10.8 yrs

Kosmo Kalliarekos

TITLE
Non Executive Director
AGE
53
TENURE
5.5 yrs

Basab Pradhan

TITLE
Independent Non Executive Director
COMPENSATION
₹7M
AGE
53
TENURE
4.8 yrs

Christian Oecking

TITLE
Independent Non-Executive Director
COMPENSATION
₹7M
AGE
56
TENURE
4.8 yrs

Meera Shankar

TITLE
Independent Director
COMPENSATION
₹7M
AGE
68
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
19. Sep 18 Sell Bharat Shah Individual 14. Sep 18 14. Sep 18 -5,000 ₹470.00 ₹-2,350,000
27. Aug 18 Sell Baring Private Equity Asia Company 24. Aug 18 24. Aug 18 -25,000,000 ₹447.83 ₹-11,195,783,088
26. Jun 18 Sell Aparna Jairam Individual 21. Jun 18 22. Jun 18 -4,000 ₹441.37 ₹-1,765,500
19. Jun 18 Sell Aparna Jairam Individual 14. Jun 18 15. Jun 18 -5,000 ₹447.00 ₹-2,235,000
22. May 18 Sell Amrinder Singh Individual 18. May 18 18. May 18 -10,000 ₹425.00 ₹-4,250,000
X
Management checks
We assess Hexaware Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hexaware Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Hexaware Technologies Limited (NSE:HEXAWARE) Earns A Nice Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Can Hexaware Technologies Limited (NSE:HEXAWARE) Maintain Its Strong Returns?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Hexaware Technologies has a return on equity of 25% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should You Know About Hexaware Technologies Limited's (NSE:HEXAWARE) Capital Returns?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in Hexaware Technologies, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Want To Invest In Hexaware Technologies Limited (NSE:HEXAWARE)? Here's How It Performed Lately

When Hexaware Technologies Limited (NSE:HEXAWARE) released its most recent earnings update (30 June 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … HEXAWARE's trailing twelve-month earnings (from 30 June 2018) of ₹5.5b has. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.9%, indicating the rate at which HEXAWARE is growing has accelerated

Simply Wall St -

What Is The Future Prospect For Tech And Hexaware Technologies Limited (NSE:HEXAWARE)?

industry based in India … Technology has become a vital component of every industry, bringing unprecedented opportunities for growth, along with challenges and competition from traditional and emerging areas … Innovations such as augmented and virtual reality, blockchain, machine learning and autonomous vehicles are paving the way for tech sector growth and branching out into new applications

Simply Wall St -

Hexaware Technologies Limited (NSE:HEXAWARE): Assessing Capital Returns

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … To understand Hexaware Technologies’s capital returns we will look at a useful metric called return on capital employed. … Hexaware Technologies's Return On Capital Employed

Simply Wall St -

Hexaware Technologies Limited (NSE:HEXAWARE): What You Have To Know Before Buying For The Upcoming Dividend

If you are interested in cashing in on Hexaware Technologies Limited's (NSE:HEXAWARE) upcoming dividend of ₹2.50 per share, you only have 2 days left to buy the shares before its ex-dividend date, 02 August 2018, in time for dividends payable on the 08 August 2018. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:? … Has it paid dividend every year without dramatically reducing payout in the past?

Simply Wall St -

Is Hexaware Technologies Limited's (NSE:HEXAWARE) CEO Salary Justified?

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … CEOs leading companies of similar size and profitability

Simply Wall St -

What is Behind Hexaware Technologies Limited's (NSE:HEXAWARE) Superior ROE?

Hexaware Technologies Limited (NSE:HEXAWARE) delivered an ROE of 24.55% over the past 12 months, which is an impressive feat relative to its industry average of 13.08% during the same period. … But what is more interesting is whether HEXAWARE can sustain this above-average ratio. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St -

Want To Invest In Hexaware Technologies Limited (NSE:HEXAWARE)? Here's How It Performed Lately

Measuring Hexaware Technologies Limited's (NSE:HEXAWARE) track record of past performance is an insightful exercise for investors. … Below, I will assess HEXAWARE's recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. … How HEXAWARE fared against its long-term earnings performance and its industry

Simply Wall St -

Company Info

Description

Hexaware Technologies Limited provides information technology consulting, software development, and business process management services worldwide. The company offers application transformation management solutions, including Agile DevOps, application development, cloud, enterprise architecture consulting, API and integration, and software product engineering services; and business intelligence and analytics solutions, such as cloud EDMA, analytics, big data platform, big data and analytics, data science community, and Internet of things services. It also provides digital customer experience services comprising customer relationship management, Web content management system, e-commerce, and UX-design; and enterprise solutions that include human capital management, finance transformation, business process management, workday, SAP, Oracle e-business suite, Oracle cloud application, PeopleSoft, supply chain transformation, and sales force consulting services. In addition, the company offers customer experience transformation, and application support and maintenance services. Further, it provides business process services, which include robotic process automation, finance and accounting, customer experience, aftersales, and human resources services; and digital assurance, including quality engineering, Digi Test, managed, and test advisory and consulting services. Additionally, the company offers infrastructure management services, such as cyber security resilience, digital workplace, hybrid cloud, Integrated Run, digital operation, application operation, service management, and Raise IT platform, as well as enterprise package solutions. The company serves the travel, transportation, hospitality, logistics, banking, financial services, insurance, healthcare, manufacturing, consumer, and service industries. The company was founded in 1990 and is headquartered in Mumbai, India. Hexaware Technologies Limited is a subsidiary HT Global IT Solutions Holdings Ltd.

Details
Name: Hexaware Technologies Limited
HEXAWARE
Exchange: NSEI
Founded: 1990
₹100,445,082,960
297,703,269
Website: http://hexaware.com
Address: Hexaware Technologies Limited
Building No. 152,
A Block, Sector - 3,
Mumbai,
Maharashtra, 400710,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI HEXAWARE Equity Shares National Stock Exchange of India IN INR 26. Feb 1999
BSE 532129 Equity Shares Mumbai Stock Exchange IN INR 26. Feb 1999
Number of employees
Current staff
Staff numbers
0
Hexaware Technologies employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 12:49
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/08
Last earnings filing: 2019/01/31
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.