Covid-19 will impact certain business verticals over the next two quarters: Hexaware –

Covid-19 will impact certain business verticals over the next two quarters: Hexaware
IT services firm Hexaware Technologies said that certain business verticals would be impacted over the next two quarters as a result of the Covid-19 pandemic, but it was too early to comment on whether it would change its guidance for FY20.

The company follows a Jan-Dec financial year, and CEO R Srikrishna said that verticals like travel and transportation and consumer, to a lesser extent, would be impacted in Q1 and Q2.

Speaking at an investor call on Tuesday, Srikrishna said that in the medium term, they expected a positive impact from this situation as the demand for Cloud based solutions and automation increases. “This crisis has helped cement customer relationships and built trust and credibility. Once this passes, we will be in a solid position to gain market share,” he said.

The company had transitioned to a work from home model almost a week before the 21-day national lockdown was announced. 99% of its IT services and 75% (by revenue) of the BPO operations were currently being run from home, with no impact on client delivery.

Apart from travel, the healthcare business would also be impacted to an extent because the fitness business had taken a hit due to the pandemic. “In many cases, demand will come back by Q2-Q3,” he said, adding that it could be a V-shaped recovery for certain businesses.

He also expects more CX (customer experience) projects to come in once the crisis has passed there is likely to be a permanent shift in the market towards making transactions and interactions contactless.

The company would be paying out its annual dividend as declared earlier and that would not be impacted by this situation.


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