HexawareNSE 1.55 % is looking to spruce up the growth momentum through inorganic route. The company plans to spend $250-300 million in the next two-three years on acquisitions through borrowings and internal accruals.
“Our cash position is strong at $ 120 million with no debt. We would like to use the cash and may be some borrowings to acquire skillsets over the next two-three years,” the company’s CEO and executive director, R Srikrishna told ET. He expects 5-6% incremental revenue growth through acquisitions during the period.
The Mumbai based mid-sized software company’s revenue grew by 11.6% growth to $ 677.7 million in the fiscal ended December 2018. It has guided for a strong 12-14% organic revenue growth for 2019. Any acquisitions during the period will therefore further boost the growth momentum.
Hexaware paid dividend of Rs 8.5 per share with face value of Rs 2 in 2018. While it expects to retain the absolute amount of dividend, Srikrishna pointed out that the actual amount will depend upon the extent of acquisitions.
The company’s revenue increased by 3.5% sequentially to Rs 1,252.4 crore in the December 2018 quarter. Operating profit (EBIT) and net profit dropped by 5.9% to Rs 668.4 crore and by 28.3% to Rs 123.4 crore respectively following outgo on salary increments.
Source: Economic Times