Hexaware Technologies was hoisted up on Tuesday after the company reported a spectacular turnaround in fourth quarter fortunes.

As a result, the scrip of the software major was placed 3.72% higher than its Monday's close to Rs 138 at 10:31 IST. Volumes of 500,000 Hexaware Technologies shares were registered on BSE by that time.

On Monday, after market hours, HTL unveiled its fourth quarter and full year results.

For Q4 ended 31 December 2002, the company posted a net profit of Rs 7.41 crore on a massive increase in total income of Rs 37.98 crore. For the year ended 31 December 2002, the company's net profit stood at Rs 7.47 crore on a total income of Rs 99.89 crore.

On a consolidated basis, for the year ended 31 December 2002, the company's net profit stood at Rs 5.75 crore on total income of Rs 249.18 crore (Rs 2.49 billion).

Looking ahead, the company expects revenue growth of 30-35% and consolidated net profit of over $ 5 million for FY 2003. The company has also announced a foray into the BPO segment through its first deal in the claims processing segment with at least a 300-seat operation by the year end.

The company expects project and client ramp to pick up towards the end of first half of the year. Further, it has restructured and revised salaries in India effective January 2003, and this is expected to affect earnings in the first two quarters. The company has projected a flat growth for Q1 of 2003. However, revenues and profitability will scale up quickly thereafter, it said, adding that it also expects strong growth in Europe.

HTL focuses primarily on marketing its three technology practices - PeopleSoft services, application management solutions, and e-Solutions - largely to the banking, financial services and insurance sector and transportation/airline industries in North America, Europe, Singapore, and India. In addition, the company is setting up an offshore R&D solutions practice comprising embedded software and chip development and testing. During the new fiscal 2003, Hexaware intends to launch several new solutions, including a dedicated service offering for HR applications, an integrated testing suite, a billing system for asset management systems, and a new leasing solutions for global.

Analysts say the management's top line guidance for next year is far better than projected. However, PBT guidance at $5mn (including associate profits) are lower and assumes margin contraction, which is a cause for concern.

On 10 June 2002, Hexaware Technologies got listed on the BSE, following the restructuring of erstwhile Aptech into two companies – one into education business and the other into software business. Aptech's software business was merged with the existing unlisted Hexaware Technologies, while the training business went to a new entity called Aptech Training. The paid-up share capital of Aptech was divided among these two companies - Aptech Training and Hexaware Technologies - in the ratio of 40:60. Aptech Training's paid-up equity share capital is approximately Rs 18.14 crore.

As on 31 December 2002, promoters held 39.09% in HTL, while the public, institutions and foreign bodies held 22.68%, 7.78% and 21.05%, respectively.