HCL Tech Q4 net at Rs 193 cr

Growth in software and infrastructure services boosts income and profit

The consolidated net income of the company stood at Rs 141 crore during the same period last fiscal.

The fourth largest software firm said the markets continue to be challenging amid slowdown, but expected a revival in the IT sector by the next year as demand picks up.

“If we look at S&P 500 companies, many of them have registered a drop in profits.

However, the markets are expected to improve by next calender year and we are in the same band,” HCL Technologies Chief Executive Officer Vineet Nayar told reporters here.

The company expects hedging losses to the tune of $ 127 million (over Rs 600 crore) in the current fiscal based on the exchange rate of Rs 48.83.

The company’s consolidated revenue rose by 34.7 per cent to Rs 2,908.5 crore in the fourth quarter compared to Rs 2,158.9 crore in the year ago period.

The revenue from infrastructure services vertical grew by 56.4 per cent to Rs 513 crore, while the software services business clocked a 33.1 per cent rise at Rs 2,114.8 crore in the fourth quarter.

Income from BPO
The income from BPO services segment rose by 15.8 per cent to Rs 280.6 crore in the fourth quarter.

When asked about new orders, Nayar declined to give specific details, but said, “The deal flow has been soft for the last two quarters and the current deal pipeline is not attractive as it was in October-December 2008. However, it is expected to see some revival in deal flow by this year-end.”For the financial year ended June 30, 2009, HCL Tech posted a consolidated net profit of Rs 1,319.63 crore, a growth rate of 25.51 per cent over the previous fiscal.

Its total income rose to Rs 10,229.41 crore in FY’09 from Rs 7,562.78 crore in 2007-08.
On acquisitions, HCL Tech Chief Financial Officer Anil Chanana said, “We are definitely looking at acquisitions. It would be domain specific say platform based or BPO-based.”

Acquisition plans
He said HCL has already completed the acquisition of Axon. “Axon acquisition is complete.

We have already repaid $ 85 million of the $ 585 million and the remaining has been restructured through foreign currency loan ($300 million) and bonds in the domestic market ($ 200 million).”

The company’s board declared a dividend of 50 per cent at the rate of Rs one per share for the fiscal year ended June 2009.

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