Mumbai: Hexaware Technologies' share price dropped sharply on Friday, March 21, falling 2 per cent in intraday trading to touch a new low of Rs 715 on the BSE. This decline follows a cautious demand outlook for the IT services sector shared by global consultancy firm Accenture.
The stock price dipped below its previous low of Rs 720 recorded on March 17, 2025, making it the lowest level since the company’s listing on February 19, 2025. Hexaware has now corrected 16 per cent from its all-time high of Rs 850, reached on February 27, 2025. The stock is now trading close to its issue price of Rs 708 per share.
However, by 1:50 PM, Hexaware rebounded slightly from its intraday low and was trading nearly 1 per cent higher at Rs 729.80. Meanwhile, the broader market was performing better, with the BSE Sensex rising 0.70 per cent to reach 76,882.
Accenture’s Cautious Outlook Weighs on IT Stocks
On Thursday, Accenture reported positive year-on-year (Y-o-Y) revenue growth and raised its Q3 and FY25 revenue guidance. However, the company maintained a cautious stance on the overall market. The upper end of Accenture’s full-year growth forecast remained at 7 per cent, signaling concerns about the macroeconomic environment. Additionally, Accenture slightly reduced its upper band margin guidance to 15.7 per cent for FY25, as per a note by ICICI Securities.
Hexaware Underperforms Market
In the past two weeks, Hexaware’s stock has underperformed the broader market, dropping 13 per cent. This decline follows the company’s financial results for the December 2024 quarter, where it reported 0.2 per cent quarter-on-quarter (Q-o-Q) revenue growth in constant currency (CC) terms. This was below market expectations due to a higher-than-expected base in Q3 and a 70 basis points (bps) impact from furloughs.
Despite this, the company’s Y-o-Y growth remained strong at 18.5 per cent. Analysts at JM Financial Institutional Securities noted that cost advantages from lower compensation expenses in H2CY23 and inorganic contributions helped mitigate the slowdown. However, EBITDA margins (excluding other income) still missed estimates by 50 bps.
What’s Next for Hexaware?
While Hexaware’s recent performance has been weak, the stock is showing signs of resilience after rebounding from its intraday low. Investors will closely watch how the company navigates the uncertain macroeconomic environment and the overall IT sector outlook in the coming months.
