Impressive Revenue, Higher Guidance Mask Near-Term Weakness Hexaware Technologies (Hexaware) delivered a strong performance in 2QCY17 primarily led by BFS vertical. USD revenue grew by a robust 5.4% QoQ to US$152.6mn (2.7% above our estimate) on the back of a strong 6.4% QoQ growth in volume. Vertical-wise, strong growth was recorded in the key BFS vertical (+7.1% QoQ), followed by Insurance & Healthcare (5% QoQ). Utilisation stood at the highest-ever level (80.8%) led by increasing focus on automation. However, EBIT margin (ex-ESOP) remained flattish at 15.9% despite strong revenue growth, as INR appreciation (42bps), higher visa cost (50bps) and lower billing rate (91bps) nullified the...