Another respectable quarter for Hexaware

Mumbai-based mid-tier IT/BP offshore services firm, Hexaware, hit its headline growth targets, reporting Q3 revenues (to 30th Sept.) of $92.8m, 1.7% higher than the prior quarter. However, operating margins slipped back 150bps to 19.9% - still in the same league as some larger peers – and in any event 3 points higher than the year-ago period. Management is looking for between 2% and 4% sequential growth this quarter though warns of a potential 0.5% impact due to Hurricane Sandy (Hexaware derives around two-thirds of its revenues from the Americas compared with 55-80% for India-based peers ).