Hexaware Tech says stake sale of biz is speculative/news05012012

Hexaware is one stock to watch out for today- Despite management denial, according to media reports suggest that the company is up for sale and is valued at $700 million! The deal talk has gained momentum after key stakeholders of Hexaware Technologies informally kicked off a process to find a valuation for the software services unit.

Atul Nishar, Chairman, Hexaware Technologies on the same. “Stake sale of business is speculative,” he said. He added that he was not aware about valuation price of $700 million. “PE investors not part of promoter group and both GA & ChrysCap are happy with their investments in the company,” he said.

Speaking on the rupee, Nishar said the company has got no benefit on profit due to rupee depreciation. “Hedging strategy will cap benefits from rupee weakness,” he explained. Hexaware Technologies has hedged $170 million at rate of 48/$ for two-year forward revenues, he said.

On the company’s business, Nishar said he expects to outperform industry growth rate in 2012. The company has a pipeline of 4-5 large deals of over $25 million each! “Top 10 clients contribute 50% of total revenue.”

However, “high visa rejection rate is putting pressure on costs,” said Nishar. One-third of visa applications are getting rejected, he added.
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