Bank of America retains Underperform rating on Hexaware Technologies

Bank of America retains `Underperform’ rating on Hexaware Technologies. Though results were in line, Bank of America (BoA) was surprised by a very sharp revenue decline guided for 1Q at a negative 16% q-o-q with outlook being the weakest announced so far. This likely reflects high exposure to discretionary spends such as ERP (~ 29% revenue, -18 % q-o-q).

Management highlighted that macro environment has worsened in 4Q; with clients across board rationalizing IT spends. With 1Q results likely to disappoint and a poor revenue outlook, stock could correct

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