Software services firm Hexaware Technologies Ltd saw its April-June consolidated net profit plunge 63.5 per cent to Rs 14.4 crore, mauled by cross-currency movements and a salary hike to offshore employees. The company had posted a net profit of Rs 39.5 crore during the same quarter a year ago, it said on Thursday. ndard Chartered keen on Shanghai listing More Profits was also weighed by initial investments committed towards a large deal signed by the company, Hexaware Technologies said in a release today. An average 15 per cent compensation hike to offshore employees from April and appreciation of rupee against euro and pound were other factors, it added.

During the quarter, it signed a $110-million contract with a Fortune 500 company, involving deployment of 500 employees globally. The contract ensures recurring revenues in excess of $20 million per annum, it said. Hexaware Technologies added 727 employees in the quarter, increasing its global headcount to 6,031. The company has hedges worth $19 million at an average rate of Rs 40.70 maturing in quarter ending September 2010. It has hedges worth $74 million at an average rate of Rs 48 and 17 million euros at an average rate of Rs 71.90 for subsequent nine quarters (Oct 2010-Dec 2012). Shares of the company were down 2.1 per cent to Rs 83 in a weak Mumbai market.

Courtesy & From :business-standard