HCL Tech Q1 net up 63.8%

HCL Tech Q1 net up 63.8%

HCL Tech Q1 net up 63.8%

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.

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.The firm 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's position as a company with a strong and differentiated business model."

HCL 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 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's 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.

The company's stock fell 0.03 per cent to Rs 1,160 apiece in early trade on the BSE. 

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