Q Profit after Tax increases by 23% Q-o-Q to ` 97.9 Crores. Q2 Revenue up 1.1% Q-o-Q on constant currency basis; up 0.

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1 Q Profit after Tax increases by 23% Q-o-Q to ` 97.9 Crores Q2 13 Revenue grew by 5.7% Q-o-Q in ` terms; Volume up 1.5% Q-o-Q Q2 Revenue up 1.1% Q-o-Q on constant currency basis; up 0.8% in $ terms EBITDA margin for Q expanded to 23.7%; up 440 bps Q-o-Q Q2 13: Interim Dividend per share: ` 1.40; Dividend Payout Ratio: 50% Q3 2013: Revenue Guidance of 3.5% - 5.5% Q-o-Q growth Hexaware met guidance for Q as revenue grew to $ 94.8 mn up 0.8% sequentially in $ terms (up 5.7% in ` terms to ` 536 Crores); up 1.1% Q-o-Q at $ 95.1 mn on a constant currency basis Q Gross margin up 170 bps Q-o-Q to 39.4% EBITDA margin for Q expanded to 23.7%; up 440 bps on Q-o-Q basis EBIT margin at 22.0%; expanded by 460 bps Q-o-Q Profit before Tax (PBT) increased by 23.7% Q-o-Q to ` Crores PBT margin expanded 330 basis points Q-o-Q to 23.1% Q Profit after Tax (PAT) grew to ` 97.9 Crore; up 23.5% Q-o-Q PAT margin increased 260 bps Q-o-Q to 18.2% Q Diluted Earnings per share (EPS) at ` 3.26; up from ` 2.64 for Q1 13 Return on Equity (RoE) increased to 35% at the end of Q2 2013; up from 28% in Q Second Interim Dividend for CY 2013 of ` 1.40 (70%) declared; Dividend payout ratio remains a healthy 50% of the Quarterly Profit after Tax Cash & Cash equivalents at the end of June 2013 increased to ` 587 Crores; Up ` 21 Crores from ` 566 Crores at the end of March 2013 DSO reduced Q-o-Q sequentially to 47 days at the end of Q from 53 days in Q new clients added in Q2 2013; 219 active clients currently Global Headcount increased by 30 to 8,700 at the end of June 2013; 100 fresh engineers added during the quarter Attrition for the quarter ended June 2013 was at 11% Mumbai July 19, 2013: Hexaware Technologies Limited, a leading global provider of IT, BPO and Consulting services has reported healthy performance for the second quarter of the calendar year ended June 30, For immediate release 1

2 As guided last Quarter, Hexaware profitability has materially improved across the board to healthy levels; gross margin at 39.4%, EBITDA at 23.7% and PAT at 18.2%. We believe going forward our margins will remain healthy. In view of the higher profit, the board has enhanced the 2 nd interim dividend to 70%; maintaining the dividend pay-out ratio at 50% of profit after tax, said Atul Nishar, Chairman, Hexaware Technologies Limited. Our enhanced attention to the Top 50 client account management has reflected in our current deal pipeline & continued investments for hunting new logos resulted in yet another strong showing with 14 new client additions. We remain confident of delivering robust Q-o-Q growth of 3.5% - 5.5% in the coming quarter, stated P. R. Chandrasekar, CEO and Vice Chairman, Hexaware Technologies Limited. Q Revenue Guidance Revenue for Q is likely to be in the range of $ 98.1 mn - $ 100 mn (exchange rates taken at 1 = 1.52 $, 1 = 1.31 $ and 1 $ = ` 59.68); a Q-o-Q sequential revenue growth in $ terms of 3.5% - 5.5% Second Interim Dividend of 2013 The Board of Directors declared a second interim dividend of ` 1.40 per share (70%) on equity shares of ` 2.00 each. The record date is fixed as Wednesday, July 31, 2013 for determining the shareholders entitled for this second interim dividend of the year The payment shall be made on August 6, This would result in a cash outflow of ` 48.9 Crores for dividend payment including tax, amounting to a dividend payout ratio of 50% for Q Earlier in the year, the Board of Directors declared a first interim dividend of ` 1.20 per share (60%) on equity shares of ` 2.00 each. This had resulted in a cash outflow of ` 41.6 Crores for dividend payment including tax amounting to a dividend payout ratio of 52% for Q In line with the Board policy for Dividend distribution, Hexaware continues maintaining dividend payout ratio in the range of 50% payout for the third consecutive year. Business Updates During the previous quarter, the Company added 14 new clients across all its key focus areas. Of these, 4 clients were added in the Banking and Financial Services (BFS) Domain and 1 client was added each in the Healthcare & Insurance (H&I) space and in the Travel and Transportation Vertical. From a horizontal service line perspective, 7 clients were won in Enterprise Solutions space, 3 clients in Business Intelligence and Business Analytics (BI/ BA) Horizontal and 4 clients in Business Process Outsourcing (BPO) service line. Of the 14 clients added in Q2 2013, 7 customers are based in Americas, 2 in Europe and 5 in Asia Pacific (APAC) region. For the quarter just completed, 67.1% of revenues originated from Americas, 26.3% from Europe, and the remaining 6.6% from the Asia Pacific region. Repeat business remained healthy at 95.6%. The number of clients registering annual revenues in excess of $ 20 mn each remained steady at 3; 5 clients in the $ 10 mn - $ 20 mn range, 8 clients in the $ 5 mn - $ 10 mn range, 37 For immediate release 2

3 clients in the $ 1 mn - $ 5 mn category and the 53 clients with $ 1 mn+ all on a trailing twelve months basis. At the end of the quarter, the number of active clients increased to 219. Business Initiative on SMAC Technologies Over the last few Quarters, Hexaware has built significant competency in SMAC (Social Mobility Analytics and Cloud) technologies. The use of SMAC technologies is already helping organizations to work more collaboratively by effectively using real time data. Hexaware has built proprietary accelerators which enable quicker adoption of these technologies by enabling organizations to virtualize their IT infrastructure and use real time unstructured data from Social networks, to integrate with organizational data and provide real time analytics through Mobile devices. Hexaware is helping its customers realize the full potential of SMAC by stitching together these technologies cohesively and also by adopting business models which enable use of real time analysis. Business Updates on Quality Assurance & Testing Services Hexaware has developed a tool which can be used for automated testing of reports on data migration and BI testing projects. Further, it has also developed a new performance testing solution on the cloud using JMeter and Amazon Web Services (AWS). In addition, the Company has built significant expertise over HP ALM (Application Lifecycle Management) toolkit which allows customers to integrate source code and build application management tools. Through Hexaware s Center of Excellence Labs, the Company has developed a proprietary Accelerator for testing on Health Information Exchange, which is widely used in the US Healthcare Industry. Corporate Update Hexaware has appointed Rajesh Kanani as the Chief Financial Officer (CFO) effective July 1, He has been serving as the acting CFO since September He has been with Hexaware for over 18 years now. Facility Updates In the last Quarter, Hexaware inaugurated its latest Global Delivery Centre (GDC) at Frisco, near Dallas in the state of Texas, USA. It is a significant milestone in the growth journey of the Company. The new onshore delivery centre is situated in a prime location and in close proximity to several key clients. The state of the art infrastructure enables the Company to undertake critical IT projects, thereby adding value to existing and new customers alike. The new Dallas Global Delivery Centre allows Hexaware to add 150 engineers, commencing with 1st phase of 50 personnel, sourced from the rich local talent pool of recent graduates and experienced engineers, to its rank of global IT consultants. Hexaware will also commence recruitment from the engineering schools next year. The hiring of experienced professionals will continue on an on-going basis from the local markets. Earlier this year, Hexaware inaugurated its third Global Delivery Center (GDC) in Saltillo, Mexico. This expansion will allow the Company to hire 85 IT engineers in the coming months taking the total employee capacity to 385 at the Mexico Software Development centers. The opening of the new development center is in response to the growth that the Company is experiencing in the IT market and this will help to further strengthen Hexaware s presence and add value to more customers from this region. For immediate release 3

4 Foreign Exchange Cover The Company has hedges worth $ 226 mn at an effective rate of ` and 13 mn at an effective exchange rate of ` maturing over the course of the next eight quarters (from July 2013 to June 2015). Pricing The average bill rate per hour for Q is $ for onsite services and $ for offshore. Human Capital At the end of June 2013, the global headcount stood at 8,700; up 30 from a quarter (Q1 2013) ago. During the previous quarter, Hexaware added 100 fresh graduate engineers. For the IT Business, the technical personnel comprised 91.7% of the total work force. Attrition for Q was at 11%. Awards and Recognition Hexaware has been mentioned as one of the winners of Top 100 CISO award 2013 conferred by Infosecurity Magazine, one of India s leading exclusive information security magazines. Hexaware has been mentioned in the Gartner report titled CIOs and ERP Application Leaders Can Exploit the Impact of Differences in Third-Party Application Maintenance and Support Providers dated 04 April 2013, by analysts Bob Igou and Pat Phelan. Hexaware has been covered in the Gartner report titled CRM Market and Vendor Guide Cross-Reference Tool, 2013 dated 15 April 2013 by analysts Joanne Correia and Jim Davies. Hexaware has been mentioned as one of the fastest-growing providers, in the Gartner report titled Market Share Analysis: Consulting Services, Worldwide, 2012 dated 20 April 2013 by analyst Jacqueline Heng. Hexaware has been mentioned as one of the Tier 1 IT services organizations, in the Gartner report titled Market Share Analysis: Insurance Vertical-Specific Software, 2012 dated 06 May 2013 by analyst Derry N. Finkeldey. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. For immediate release 4

5 About Hexaware Hexaware is a leading global provider of IT & BPO and consulting services. The Company focuses on key domains such as Banking, Financial Services, Insurance, Travel, Transportation, Logistics, Life Sciences and Healthcare. Our business philosophy, Your Success is Our Focus, is demonstrated through the success we ensure for our clients. Hexaware focuses on delivering business results and leveraging technology solutions by specializing in Business Intelligence & Analytics, Enterprise Solutions, Quality Assurance and Testing Services, Remote Infrastructure Management Services and Legacy Modernization. Founded in 1990, Hexaware has a well-established global delivery model armed with proven proprietary tools and methodologies, skilled human capital and SEI CMMI-Level 5 certification. For additional information logon to Safe Harbor Statement Certain statements in this press release concerning our future growth prospects are forwardlooking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Hexaware has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. For more information contact: Sreedatri Chatterjee Hexaware Technologies Limited Tel: +91 (22) / 83 sreedatric@hexaware.com Issued on behalf of Hexaware Technologies by: Priya Panwekar Adfactors PR Private Limited Tel: priya.panwekar@adfactorspr.com For immediate release 5

6 Consolidated Audited Income Statement (as per Indian GAAP) ` Mn Quarterly Data Head Q2 13 Q1 13 QoQ% Q2 12 YoY% Revenues 5,366 5, % 5, % Direct Costs 3,252 3, % 2, % Gross Profit 2,114 1, % 2, % Selling, General And Administration % % EBITDA 1, % 1, % Depreciation and Amortization % % Operating Profit = EBIT 1, % 1, % Other Income (net) % % Forex Gains / (Losses) (40) 23 N.A (55) -28.2% Profit Before Tax 1,242 1, % 1, % Provision for Tax % % Profit After Tax % % Key Ratios Q2 13 Q1 13 QoQ% Q2 12 YoY% Gross Margin 39.4% 37.7% 1.7% 40.1% -0.7% SG&A to Revenue 15.7% 18.4% -2.7% 17.2% -1.5% EBITDA 23.7% 19.3% 4.4% 22.9% 0.8% Operating / EBIT Margin 22.0% 17.4% 4.6% 21.4% 0.6% Profit before tax 23.1% 19.8% 3.3% 22.4% 0.7% Profit after Tax 18.2% 15.6% 2.6% 17.8% 0.4% EPS-INR Basic Diluted For immediate release 6

7 Consolidated Audited Balance Sheet (as per Indian GAAP) As at June As at Mar Head Equity & Liabilities ` Mn As at June Equity Share Capital Reserves 13,360 12,543 11,528 Forex MTM (1,328) (411) (1,310) Non Current Liability Liability - Forex (MTM) Dividend Pending Payout Other Current Liabilities 2,714 2,730 2,462 Total Sources of Funds 16,809 16,575 14,712 Assets Net Fixed Assets 5,321 5,168 5,028 Deferred Tax Asset (Net) Long Term Loans and Advances 1,132 1, Non Current Assets / Investments Cash and cash equivalent 5,876 5,664 4,296 Current Assets Debtors 2,884 2,986 2,527 Current Asset - Forex (MTM) 41 Others 1,507 1,490 1,814 Total Current assets 4,390 4,517 4,341 Total Uses of Funds 16,809 16,575 14,712 For immediate release 7

8 Financial and Operational Metrics Performance Review Revenue Growth Vertical Split Service Lines Split `, Mn Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY 12 FY 12 Revenue from Operations 5,366 5,077 5,023 5,075 5,001 19,482 %, q-o-q 6 1 (1) Other Income Banking and Capital Markets Travel & Transportation Healthcare & Insurance Emerging Segments Total Application Development & Maintenance (ADM) Enterprise Solutions Testing / QATS (Quality Assurance and Testing Services) Business Intelligence & Analytics Business Process Management (BPM) Remote Infrastructure Management Services (Remote IMS) Total Geography Onsite: Offshore Mix Americas Europe Asia Pacific Total Onsite Offshore Total Client data Repeat Business % Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY Clients billed No Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY Clients added No Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY 12 FY For immediate release 8

9 DSO Days Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY 12 Billed Including Unbilled Accruals Billing rate $ / Hour Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY 12 FY 12 Onsite Offshore Revenue Concentration Top Top Top Client Size Nos (Last Twelve Months) Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY 12 More than $ 1 Mn Between $ 1 to 5 Mn Between $ 5 to 10 Mn Between $ 10 to 20 Mn Over $ 20 Mn People Numbers IT Services % Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY 12 Billable Personnel Onsite 18.8% 18.1% 17.1% 17.1% 17.0% Offshore 72.9% 73.6% 75.2% 75.1% 75.1% Total 91.7% 91.7% 92.3% 92.2% 92.1% Marketing (Incl. Sales 2.0% 2.0% 1.9% 2.0% 1.9% Support) Others (Incl. Tech. 6.3% 6.3% 5.8% 5.8% 6.0% Support) Grand Total 100.0% 100.0% 100.0% 100.0% 100.0% Utilization Including Trainees Attrition Rate % Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY 12 Last Twelve Months Rupee Dollar Rate Q2 FY 13 Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY 12 FY 12 Period Closing rate Period average rate For immediate release 9

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