HCL net profit jumps 16.1% in Q2

IT major HCL on Tuesday reported a net profit of Rs 2,540 crore for the second quarter ended September 30, 2018, up 16.1% compared with Rs 2,188 crore for the corresponding quarter last year.

On a sequential basis, the net profit grew 5% compared with Rs 2,403 crore recorded during the first quarter ended June 30, 2018.

On the other hand, the revenues of the company jumped by 19.5% to Rs 14,860 crore, from Rs 12,433 crore in the same quarter last fiscal.

Out of the total income, the IT major generated Rs 8,711 crore from the software services, Rs 5,343 crore from the IT infrastructure services and Rs 806 crore in the business process outsourcing segment.

The growth in the revenues of the company has been propelled by Global Infrastructure Services, Engineering and R&D and Mode 2 next-gen services, according to C Vijayakumar, President and CEO, HCL Technologies. “Additionally, our Mode 3 revenue continues to accelerate and achieved the billion dollar annual run-rate milestone. We remain confident of retaining this growth trajectory going forward,” he said.

Meanwhile, the IT major has also declared an Interim dividend of Rs 2 per equity share of the Company for the FY2018-19.

The company has also appointed Roshni Nadar Malhotra, the daughter of its Chairman and Chief Strategy Officer, as the Vice Chairman of the Board of Directors of the company with effect from October 22, 2018.

On the geographical front, company’s America business grew by 4.4%, while business from Europe declined by 0.9%, and rest of the world went up by 4.9%, on sequential basis. America's contributed 62.4% to the company's revenues during the quarter.

Among the business verticals, company saw highest increase in its Business Services vertical with a sequential jump of 7.3%. Financial Services contributed the highest 25% to the company's total revenues.

The company lost one $50-million plus client during the quarter.

The company’s stocks closed 2.79% lower on BSE on Tuesday, at Rs 952.75 per scrip.

Mode 2 revenue growth for the company, which includes Cloud Native and Digital & Analytics offerings, grew by 5.3% sequentially.

On the hiring front, the company has hired 11,683 employees during the quarter, but attrition level has also risen to 17.1%.