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Hexaware Technologies Limited Balance Sheet (Rs. In Millions)

 

 

PARTICULARS	31 March 2023	31 March 2022
ASSETS
Non-current assets
Property, plant and equipment	5,257	5,985
Capital work-in-progress	552	63
Right-of-use assets	3,761	3,878
Goodwill	14,290	14,205
Other intangible assets	1,227	1,807
Financial assets:
Investments	4	3
Other financial assets	660	570
Income tax assets (net)	756	536
Deferred tax assets (net)	2,461	2,387
Other non-current assets	894	886
Total non-current assets	29,862	30,320
Current assets
Financial assets:
Investments	2506	–
Trade receivables
Billed	13,863	13,846
Unbilled	4,595	4,972
Cash and cash equivalents	17,734	12,916
Other bank balances	103	112
Other financial assets	115	179
Income tax assets (net)	448	354
Other current assets	2,802	2,417
Total current assets	42,166	34,796
TOTAL ASSETS	72,028	65,116
EQUITY AND LIABILITIES
Equity
Equity share capital	607	604
Other equity	45,745	40,626
Total equity	46,352	41,230
Non-current liabilities
Financial liabilities:
Lease liabilities	3,151	3,068
Other financial liabilities	166	632
Provisions	794	663
Total non-current liabilities	4,111	4,363
Current liabilities
Financial liabilities:
Borrowings (secured)	–	827
Lease liabilities	792	670
Trade payables	6,657	5,437
Other financial liabilities	6,727	6,237
Other current liabilities	3,327	3,239
Provisions	2,287	1,821
Income tax liabilities (net)	1,775	1,292
Total current liabilities	21,565	19,523
Total liabilities	25,676	23,886
TOTAL EQUITY AND LIABILITIES	72,028	65,116

Hexaware Technologies Limited Profit & Loss Statement (Rs. In Millions)

 

PARTICULARS	31 March 2023	31 March 2022
INCOME
Revenue from operations	1,03,803	91,996
Other income	88	1,792
TOTAL INCOME	1,03,891	93,788
EXPENSES
Employee benefits expense	61,142	55,444
Finance costs	378	335
Depreciation and amortization expense	2,836	2,444
Other expenses	26,850	24,335
TOTAL EXPENSES	91,206	82,558
PROFIT BEFORE TAX	12,685	11,230
Tax expense
Current tax	2,780	2,330
Deferred tax charge / (credit)	-71	58
Total tax expense	2,709	2,388
PROFIT FOR THE YEAR	9,976	8,842
OTHER COMPREHENSIVE INCOME (OCI)
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit plan	-47	-55
Income tax relating to items that will not be reclassified to profit or loss	9	12
Items that will be reclassified subsequently to profit or loss
Exchange differences in translating the financial statements of foreign operations	410	1,398
Net change in fair value of cash flow hedges	228	-994
Income tax relating to items that will be reclassified to profit or loss	-44	203
TOTAL OTHER COMPREHENSIVE INCOME / (LOSSES)	556	564
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	10,532	9,406
Earnings per equity share: Basic and diluted (INR)
Basic	32.9	29.31
Diluted	32.82	29.06

Hexaware Technologies Limited Consolidated Cash Flow Statement (Rs. In Millions)

 

 

Particulars	31 March 2023	31 March 2022
Cash flow from operating activities
Profit before tax	12,685	11,230
Adjustments for:
Depreciation and amortization expense	2,836	2,444
Employee stock option compensation cost	264	406
Interest income	-63	-13
Life time expected credit loss	500	77
Net (gains)/losses on investments carried at fair value through profit or loss	-45	13
Gains on redemption / sale of Investments	-39	-43
Profit on sale of property, plant and equipment (PPE) (net)	-4	-2
Exchange rate difference (net) – unrealized	–	18
Finance costs	378	335
Operating profit before working capital changes	16,512	14,465
Adjustments for:
Trade receivables and other assets	-220	-5,877
Trade payables, other liabilities and provisions	1,443	2,053
Cash generated from operations	17,735	10,641
Direct taxes paid (net)	-2,579	-2,435
Net cash generated from operating activities	15,156	8,206
Cash flow from investing activities
Purchase of PPE and intangible assets including CWIP and capital advances	-643	-1,192
Proceeds from sale of property, plant and equipment	9	2
Purchase of investments	-6,201	-7,800
Proceeds from sale / redemption of investments	3,778	9,054
Payment for acquisition of business (Refer to note 8)	–	-227
Interest received	61	12
Net cash used in investing activities	-2996	-151
Cash flow from financing activities
Proceeds from issue of shares / share application money (net)	3	1
Repurchase of restricted stock units	-190	-460
Payment of lease liabilities (Refer to note 5B)	-1033	-865
Proceeds from short term borrowing	–	1,213
Repayment of short term borrowing	-837	-407
Interest paid	-136	-56
Dividend paid	-5,308	-6,637
Net cash used in financing activities	-7,501	-7,211
Net / increase in cash and cash equivalents	4659	844
Cash and cash equivalents at the beginning of the year	12,916	11,787
Exchange difference on translation of foreign currency cash and cash equivalents	159	285
Cash and cash equivalents at the end of the year	17,734	12,916

Let ‘s delve into a detailed explanation of each section of the Cash Flow Statement for the years 2023 and 2022:

 1. Cash Flow from Operating Activities (CFO):

   – The CFO section outlines cash flows generated from the company ‘s core business operations.

   – It starts with the profit before tax figure, which represents the company ‘s earnings before accounting for taxes.

   – Adjustments are made to this figure to reflect cash expenses or income items, such as depreciation, employee stock option compensation, and interest income.

   – The adjustment for depreciation and amortization expense is crucial as it represents non-cash expenses that need to be added back to determine actual cash flow.

   – The net gains or losses on investments carried at fair value through profit or loss, gains on redemption/sale of investments, and profits/losses from the sale of property, plant, and equipment are also factored in.

   – Additionally, adjustments for changes in working capital items like trade receivables, trade payables, and other assets and liabilities are made to derive the cash generated from operations.

   – Finally, direct taxes paid are subtracted from the operating cash flows to arrive at the net cash generated from operating activities.

 2. Cash Flow from Investing Activities (CFI):

   – This section details cash flows related to investments in assets not directly related to the company ‘s core operations.

   – It includes cash flows from the purchase and sale of property, plant, and equipment (PPE), intangible assets, and investments.

   – The net cash used in investing activities is calculated by subtracting the cash inflows from the cash outflows, including proceeds from the sale of assets and investments and payments for acquisitions.

   – Interest received on investments is also included in this section.

 3. Cash Flow from Financing Activities (CFF):

   – CFF reflects cash flows related to financing activities, including transactions with shareholders and lenders.

   – It encompasses proceeds from issuing shares, repurchase of stock units, payment of lease liabilities, borrowing activities, repayment of borrowings, interest paid, and dividend payments.

   – The net cash used in financing activities is calculated by subtracting cash inflows from cash outflows.

 4. Net Increase in Cash and Cash Equivalents:

   – This section summarizes the overall change in cash and cash equivalents during the period.

   – It ‘s calculated by adding the net cash flows from operating, investing, and financing activities.

   – The net increase in cash and cash equivalents is then added to the cash and cash equivalents at the beginning of the year to derive the closing balance of cash and cash equivalents at the end of the year.

Financial Ratios of Hexaware Technologies Limited:

Particulars	2023	2022
Current ratio (in times)	2.48	3.06
Debt-equity ratio (in times)	0.08	0.09
Debt service coverage ratio (in times)	14.02	15.94
Return on equity ratio (in %)	26.24%	25.81%
Trade receivables turnover ratio (in times)	4.14	3.67
Trade payables turnover ratio (in times)	4.2	4.06
Net capital turnover ratio (in times)	3.53	2.89
Net profit ratio (in %)	14.58%	16.82%
Return on capital employed (in %)	30.29%	30.62%

Insights into the financial health and performance of the company in 2023 and 2022:

 1. Current Ratio:

   – Indicates the company ‘s ability to meet short-term liabilities with its short-term assets.

   – A higher current ratio indicates better liquidity.

   – In 2023, the current ratio is 2.48, slightly lower than 3.06 in 2022, suggesting a decrease in liquidity.

 2. Debt-Equity Ratio:

   – Measures the proportion of debt and equity financing in a company ‘s capital structure.

   – Lower values indicate lower reliance on debt financing.

   – The debt-equity ratio decreased from 0.09 in 2022 to 0.08 in 2023, indicating a slightly reduced dependence on debt financing.

 3. Debt Service Coverage Ratio:

   – Measures the company ‘s ability to cover its debt obligations with its operating income.

   – Higher values indicate better ability to cover debt obligations.

   – The ratio decreased from 15.94 in 2022 to 14.02 in 2023, indicating a slight decrease in the company ‘s ability to cover its debt service obligations.

 4. Return on Equity (ROE) Ratio:

   – Measures the company ‘s profitability relative to shareholders ‘ equity.

   – Indicates how much profit a company generates for each rupee of equity.

   – ROE increased from 25.81% in 2022 to 26.24% in 2023, indicating improved profitability relative to shareholders ‘ equity.

 5. Trade Receivables Turnover Ratio:

   – Measures how efficiently a company is managing its accounts receivable.

   – Indicates the number of times receivables are collected during a period.

   – Increased from 3.67 in 2022 to 4.14 in 2023, indicating better management of receivables.

 6. Trade Payables Turnover Ratio:

   – Measures how efficiently a company pays its suppliers.

   – Indicates the number of times payables are paid during a period.

   – Increased slightly from 4.06 in 2022 to 4.20 in 2023, suggesting improved efficiency in paying suppliers.

 7. Net Capital Turnover Ratio:

   – Measures the efficiency of capital utilization in generating sales.

   – Indicates the amount of sales generated per unit of capital employed.

   – Increased from 2.89 in 2022 to 3.53 in 2023, indicating improved efficiency in generating sales relative to capital employed.

 8. Net Profit Ratio:

   – Measures the profitability of the company ‘s operations relative to its net sales.

   – Indicates the percentage of net profit earned on net sales.

   – Decreased from 16.82% in 2022 to 14.58% in 2023, indicating a decrease in profitability relative to net sales.

 9. Return on Capital Employed (ROCE) Ratio:

   – Measures the efficiency of capital utilization in generating profits.

   – Indicates the percentage of profits earned on capital employed.

   – Slightly decreased from 30.62% in 2022 to 30.29% in 2023, indicating a slight decrease in profitability relative to capital employed.

Dividend History of Hexaware Technologies Limited:

 

Particulars	2023
Dividend (final + interim) (In Rs.)	17.50

 

Annual Report- 2022