Hexaware Technologies moved strong in early trades today on the basis of an announcement by the company that it has bagged a multi-million dollar order from a major US manufacturer.

The scrip of the Atul Nishar-promoted company jumped 4.7% to Rs 125.75 on BSE. It hit a high of Rs 127.70 barely as trading commenced. Around 1.17 lakh Hexaware shares were traded on BSE in just about 10 minutes of trading.

The stock had backed out, of late, from gains made around early January 2003. From a peak of Rs 159.65 on 16 January 2003, the stock slipped to the sub-Rs 100-level in May 2003. The stock moved in a band of Rs 100-120 over the last two-and-a-half months. Occasionally, the scrip sees a rise in tradisng volumes. Average daily volumes in one year (to 20 June 2003) were around 13.3 lakh shares.

On Monday, Hexaware announced that Citibank arm Citigroup Global Markets had acquired 12.53 lakh shares in the company, amounting to a 5.67% stake.

Then, on Wednesday, Hexaware announced that it had won a multi-million dollar engagement with a U.S. manufacturer, which involves providing business critical HR solutions . These solutions will be deployed globally using latest PeopleSoft versions and .NET technologies. The company neither unveiled the size of the project nor the name of the client involved in the order .

The project comprises the following four phases – up gradation of the existing current PeopleSoft HRMS 7.02 to version 8.8 to make the system browser based for employees globally; implementation of new modules of PeopleSoft 8.8 that includes providing enhanced data warehousing based reporting capabilities; development of employee self service systems and tools using .Net technologies and subsequent integration of the PeopleSoft and .Net technology platforms. The entire engagement will be handled using the onsite / offshore delivery methodology. Successful completion of this project will lead to a more integrated system for the customer resulting in increased ROI.

Currently, Hexaware already has a 'PeopleSoft' practice and around 21% of its revenues for the quarter ended 31 March 2003 were from this practice. Recently, PeopleSoft announced its plans to expand its presence in India. It will set up and expand its new India Services Centre (ISC) at Bangalore in partnership with Hexaware. Hexaware will be responsible for setting up and operating the centre to PeopleSoft's world class standards. This was revealed in a press conference on 22 May 2003.

Hexaware follows the calendar year as its accounting year. For calendar 2003, Hexaware had earlier issued an outlook of revenue growth of 30-35 % over FY 2002. It expects consolidated net profit before taxes of over $ 5 million (includes profit of associate). The company expects project and client ramp to pick up towards the end of first half of the year. Notably, Hexaware's management indicated that the current deal with PeopleSoft has been partly captured in the guidance given at the beginning of the year, as the management was hopeful of such a deal formalising in the year ahead.

For Q1 ended 31 March 2003, Hexware posted a 31% rise in revenues and a turnaround at the net level with PAT of Rs 1.75 crore as against a loss of Rs 8.99 crore in the corresponding previous period.

For the year ended 31 December 2002, Hexaware had posted sales of Rs 97.7 crore and PAT of Rs 7.47 crore.