HCL Tech Q2 Net up 58.4% at Rs 1,496 cr

India's fourth largest software services exporter HCL Technologies today reported a 58.4 per cent rise in consolidated net profit at Rs 1,496 crore for the second quarter ended December 31, 2013, on the back of growth in manufacturing and infrastructure services.

The city-based firm, which follows July-June fiscal year, had posted a net profit of Rs 944 crore in the year-ago period, it said in a BSE filing.

Consolidated revenues grew by 30.4 per cent at Rs 8,184 crore in the October-December quarter of this fiscal against Rs 6,278 crore in the same quarter of the previous fiscal.In the July-September quarter, the firm had reported a net profit of Rs 1,416 crore and revenues of Rs 7,961 crore.

Commenting on the performance, HCL Technologies Chairman and Chief Strategy Officer Shiv Nadar said: "As a company HCL has always differentiated itself on two key pillars – corporate excellence and governance, and trust through transparency and flexibility. Our sustained efforts in these areas continue to be recognised."

In dollar terms, for the first time the software services exporter crossed the USD 5 billion in revenues for the calendar year (CY) 2013.

Net profits rose by 39.1 per cent to USD 242 million in the second quarter of the current fiscal against USD 174 million in the year-ago period.

Revenues rose by 14.5 per cent to USD 1.32 billion during the review period from USD 1.15 billion in the corresponding quarter of the last fiscal.

In the July-September quarter, HCL Technologies reported a net profit of USD226 million and revenues of USD 1.27 billion.

"HCL continues its profitable growth trajectory with yet another stellar quarter of 4 per cent QoQ revenues growth and 39.1% YoY net income growth," HCL Technologies President & CEO Anant Gupta said.

The company also crossed many milestones during the quarter, with its CY 2013 revenues crossing the USD 5 billion landmark. Besides, Infrastructure services, Europe geography and Manufacturing vertical each crossed USD 1.5 billion in revenues, he added.

For the year ended December 31, 2013, HCL Technologies had cash and cash equivalents of USD 135.1 million compared to USD 96.8 million at the end of September 30, 2013.

"The asset light model reflected by our fixed asset turnover at 10x of revenues, and efficient working capital management, continued to keep the return on equity at a historic high of 35 per cent and operating cash flows in excess of 100 per cent of net income," HCL Technologies CFO Anil Chanana said.

HCL Technologies added 6 clients during the October-December quarter, taking the total clients to 844. Total headcount of the company stood at 88,332 for the period, with gross additions at 7,593 and net at 1,136.

Shares of the company was trading at Rs 1350.10 apiece, up 1.10 per cent from its previous close on BSE.