Hexaware Technologies , a prominent player in the Indian IT sector, has seen its stock rise over 5% in the past seven trading sessions since September 5, outperforming the ET Infotech index's 3% gain. This rally comes amidst a weaker rupee and expectations of potential US Federal Reserve rate cuts, which could potentially boost technology spending by US clients.

Market Performance and Drivers

The company's stock performance has been influenced by several factors:

1. Currency Fluctuations: A weaker rupee typically benefits Indian IT companies as they earn a significant portion of their revenue in foreign currencies, particularly US dollars.

2. US Federal Reserve Policy: Expectations of rate cuts by the US Federal Reserve have sparked optimism about increased technology spending by US clients, a key market for Indian IT firms.

Financial Performance

Hexaware Technologies reported modest growth in its recent financial results:

• Sequential revenue growth of 1.30% in constant currency during the June quarter
• Impact on growth due to reduced spending from a large client
• Challenges in the manufacturing and consumer vertical attributed to macroeconomic factors and tariff uncertainties
• Strong performance in the banking vertical with 13.80% sequential growth

Operational Improvements

The company has made strides in improving its operational efficiency:

• Increased offshore services share to 46.70%
• Improved employee utilization to 83.70%
• Expanded operating margin by 70 basis points sequentially to 17.30%

Analyst Outlook

Despite the recent stock rally, analysts have adjusted their growth estimates:

• JM Financial has reduced the 2026 revenue growth forecast to 7% from 9%
• Many analysts retain buy ratings on the stock
• The company maintains its revenue guidance

ESG Performance

In a recent development, Hexaware Technologies has demonstrated strong commitment to environmental, social, and governance (ESG) practices:

• S&P Global has assigned Hexaware an impressive ESG score of 83 out of 100
• The score is heavily weighted towards the Social Dimension, followed by Governance & Economic Dimension, and Environmental Dimension
• This high ESG rating reflects the company's dedication to sustainable and responsible business practices

Conclusion

Hexaware Technologies' recent stock performance, driven by macroeconomic factors and operational improvements, coupled with its strong ESG rating, positions the company as an interesting player in the Indian IT sector. While facing some challenges in specific verticals, the company's focus on efficiency and sustainable practices may contribute to its long-term resilience in a competitive market landscape.

Hexaware Technologies Limited , a prominent player in the Indian IT services sector, has demonstrated its commitment to sustainable business practices by securing a robust Environmental, Social, and Governance (ESG) score of 83 out of 100 from S&P Global. This achievement underscores the company's dedication to responsible corporate citizenship and sustainable growth.

ESG Score Breakdown

The S&P Global ESG score for Hexaware Technologies is weighted across three key dimensions:

1. Social Dimension (Highest weighting)
2. Governance & Economic Dimension
3. Environmental Dimension

This breakdown reflects the company's strong focus on social responsibility and corporate governance, while also addressing environmental concerns.

Official Disclosure and Transparency

In a move towards greater transparency, Hexaware Technologies has officially informed the stock exchanges about this ESG rating. The company has also announced plans to host this information on its corporate website, making it easily accessible to stakeholders and the public.

Gunjan Methi, Company Secretary & Compliance Officer of Hexaware Technologies Limited, stated in the official communication to the stock exchanges, "Please note that the S&P Global has assigned 83/100 Score to the Company for ESG practices followed by the Company. The score is most heavily weighted to Social Dimension, followed by Governance & Economic Dimension and finally Environmental Dimension."

Implications for Investors and Stakeholders

This strong ESG score is likely to be viewed positively by investors who increasingly consider sustainability metrics in their investment decisions. It demonstrates Hexaware's commitment to managing environmental risks, fostering social responsibility, and maintaining strong corporate governance practices.

Upcoming Investor Engagements

Hexaware Technologies has also announced its participation in upcoming investor conferences:

1. Jefferies 4th India Forum
2. Axis Capital Consumer & Tech Conference

These events will provide opportunities for investors and analysts to engage with the company and potentially discuss its ESG initiatives among other business matters.

As companies worldwide face growing pressure to operate sustainably and responsibly, Hexaware Technologies' strong ESG score positions it favorably in the eyes of environmentally and socially conscious investors and customers alike.