The stock of Hexaware Technologies has had a resounding run over the past several months. After a couple of challenging years in 2008 and 2009, when the company was grappling with fall in revenues, the situation seems to have substantially improved. The company was earlier struggling with anaemic volumes and pricing cuts.

But for the three quarters in succession in FY10, the company has posted healthy growth rates in revenues, with a double digit expansion in the last couple of quarters.

Billing rates have improved by about three per cent for onsite projects, though it is yet to pick up for offshore ones. Client additions in the $5-10 million and $20 million plus categories have been strong. Its top clients have started increasing IT spends over the past couple of quarters, allowing the company to benefit from the trend.

Hexaware still has levers such as increasing its utilisation levels and offshore component of revenues at its disposal, for optimising costs.

What has been even more heartening for Hexaware is the fact that with the September 2010 quarter, its forex losses have come to an end due to better management of its hedging programme.

Emboldened by improving traction in volumes and revenues, Hexaware has projected guidelines for at least 25 per cent growth in revenues in FY-11 compared to the previous fiscal and a double digit operating margin to go with it. A stock split that was carried out recently too has increased the activity in the counter.

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