"COVID-19 has led to significant uncertainty in the current environment. In view of this, we suspend the guidance that was provided earlier for FY20," the company said in a statement. It had earlier forecasted revenue growth of 15-17 per cent and EBITDA margins of 15-16 per cent for 2020.
The company acquired US-based digital services firm Mobiquity for $182 million in an all-cash deal in July last year.
“We have been best-in-class in keeping our employees safe and servicing our customers fully during these abnormal times. Our flawless execution has helped us further strengthen our trusted relationships with customers and will help us grow with them during recovery,” said R Srikrishna, CEO & Executive Director, Hexaware Technologies.
The numbers were largely in line with street expectations with a beat on profit front. Edelweiss pegged the profit at Rs 153.2 crore for the quarter while revenue was seen at Rs 1,531.6 crore. "We expect revenues (in cc terms) to decline as the economic slowdown further hits banks and capital market clients," it said in an earnings preview note.
This comes as its larger IT rivals acknowledged the uncertainties arising from the COVID-19 outbreak. Infosys said it was unable to provide guidance on revenues and margins for FY21. TCS cautioned maximum impact of the crisis would be felt during the first quarter of the current financial year (Q1FY21).