HCL Technologies Q1 profit soars 78% at Rs 885 crore

 HCL Technologies on Wednesday reported net profit of Rs 885 crore for the quarter ended September 30, 2012 (Q1), which is a jump of 78.1 per cent from Rs 496.7 crore in the same quarter previous year.

The company, which follows a July to June financial quarter registered revenues of Rs 6,091 crore during the quarter under review, showing an increase of 31 per cent from Rs 4,651 crore it reported in the Q1 last year.

“A 31 per cent YoY growth in revenues and a 78 per cent growth in net income this quarter reiterates the fact that robust revenue growth can be achieved profitably. Increased wins in Fortune 500 accounts have resulted in Americas and Europe geographies growing at 34 per cent and 37  YoY respectively”, said HCL Technologies Vice-Chairman and Chief Executive Officer Vineet Nayar said.

Its EBITDA margins have also improved in this quarter and stood at 22.2 per cent as compared to 17.1 per cent in the quarter ended September 30 last year.

“HCL Technologies, with end-to-end IT capabilities and strong client mining ability, is clearly emerging as a front runner and outperforming many of its peers. Operating margin remained almost stable on a quarterly basis in spite of giving wage hikes during the quarter, which was a positive surprise. Profit after tax also grew by 3.6 per cent to Rs 885 crore, aided by gains on operational front,” Angel Broking IT Analyst Ankita Somani said.

The company said that it has won 12 multi-year, multi-million dollar deals this quarter across service lines led by manufacturing, financial services and consumer services verticals.

“Higher operating profits coupled with the efficient management of working capital, has enabled us to report 27 per cent return on equity on LTM basis which is in the upper quartile of our industry. We continue to convert more than 100 per cent of the net income to operating cash flow on LTM basis” HCL Technologies Chief Financial Officer Anil Chanana said.

HCL Technologies stocks on BSE closed at Rs 580.30, down 0.68 per cent from the previous close.