HCL Technologies net profit in quarter surges 63.8 pct at Rs 1,416 cr

Oct 17 2013, 11:10 IST
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HCL Technologies' customers include Nokia Oyj, Xerox Corp  and AstraZeneca PLC. Reuters HCL Technologies' customers include Nokia Oyj, Xerox Corp and AstraZeneca PLC. Reuters
SummaryHCL Technologies quarterly profit beat market expectations.

India's fourth largest software services exporter HCL Technologies today reported a 63.8 per cent rise in consolidated net profit at Rs 1,416 crore for the first quarter ended September 30, 2013, on the back of growth in Europe and encouraging macro-economic trends.

The company had posted a net profit of Rs 864 crore in the year-ago period, it said in a BSE filing.

HCL Technologies consolidated revenues grew by 31.2 per cent at Rs 7,961 crore in the July-September quarter this fiscal against Rs 6,069 crore in the same quarter of the previous fiscal.

HCL Technologies follows July-June as the fiscal year.

Commenting on the performance, HCL Technologies Chairman and Chief Strategy Officer Shiv Nadar said: "Against the backdrop of encouraging macro-economic trends, these results cement HCL Technologies' position as a company with a strong and differentiated business model."

HCL Technologies remains well positioned in both existing and emerging momentum markets, with exceptionally strong customer relationships driving sustainable growth, he added.

In dollar terms, net profits rose by 42.8 per cent to USD 225.6 million in the first quarter of the current fiscal against USD 158 million in the year-ago period. Revenues rose by 14.1 to USD 1.27 billion during the review period from USD 1.11 billion in the corresponding quarter last fiscal.

"HCL Technologies continues to strengthen its position in the momentum markets of the industry with Europe crossing a milestone run rate of USD 1.5 billion reflecting a very healthy 23.6 per cent growth y-o-y," HCL Technologies President & CEO Anant Gupta said.

The year-on-year growth of 42.8 per cent in net income and 14.1 per cent in revenues continues the 8 successive quarter of HCL Technologies' story of profitable growth. Its focus on Generation 2 propositions like Enterprise of the Future in TM ITO and ALT ASM in Application Services continues to drive the company's quality of revenue, he added.

For the year ended September 30, 2013, HCL Technologies had cash and cash equivalents of USD 96.8 million compared to USD 123.3 million at the end of June 30, 2013.

HCL Technologies added 11 clients during the July-September quarter, taking the total clients to 838. Most additions (6) were in the USD 20 million bracket.

It also booked in excess of USD 1 billion including 9 transformational deals during the quarter. The wins are led by manufacturing, financial services, life sciences & healthcare and public services, the company said.

"US and Europe continue to drive deal wins during the quarter," the company said.

HCL Technologies added 1,691 employees during the September quarter taking the total headcount to 87,196.

HCL Technologies also declared a dividend Rs 2 per share.

HCL Technologies shares fell 0.03 per cent to Rs 1,160 apiece in early trade on the BSE.

HCL Technologies' quarterly profit rises 64 pct, tops estimate

(Reuters) HCL Technologies, India's No. 4 IT services exporter, beat market expectations with a 64 percent rise in September quarter profit, joining larger Indian rivals in signalling accelerated spending by clients.

HCL Technologies' consolidated net profit for the three months ended Sept. 30 rose to 14.16 billion rupees ($229 million) from 8.64 billion rupees in the same period a year earlier, company said on Thursday.

That compares with the 13.36 billion rupee average of 25 analyst estimates - Quote: HCL Technologies.

HCL Technologies' customers include Nokia Oyj, Xerox Corp and AstraZeneca PLC. HCL Technologies follows a July-June fiscal year.

Tata Consultancy Services (TCS), the No. 1 Indian IT services provider, on Tuesday beat profit expectations for the September quarter and said it may increase hiring.

On Friday, No. 2 player Infosys increased the lower end its revenue forecast for the year ending in March and said clients were accelerating spending.

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