HCL Tech Q3 net profit up 59% at Rs 1,624 cr

HCL Tech Q3 net profit up 59% at Rs 1,624 cr

IT services firm HCL Technologies on Thursday posted 59 per cent increase in net profit at Rs 1,624 crore for the quarter ended March 31, 2014.

The Noida-based firm had posted a net profit of Rs 1,021 crore in the corresponding quarter of last fiscal (2012-13), HCL Technologies said in a statement.
The company follows the July-June fiscal.

Revenues for the reported quarter were up 29.8 per cent at Rs 8,349 crore from Rs 6,430 crore in Q3 of 2011-12.

In dollar terms, net profit grew 39.9 per cent to $264.2 million, while revenues rose 14.3 per cent to $1.36 billion in Q3 of 2013-14.

"We continue on our growth momentum with a strong revenue growth of three per cent quarter-on-quarter along with 10th straight quarter of margin expansion," HCL Technologies President and CEO Anant Gupta said.

The Application Services business registered a robust performance led by Digital Systems Integration proposition on discretionary side and ALT ASM (offering) on the non-discretionary side, he added.

Sequentially, net profit was higher by 8.5 per cent from Rs 1,496 crore and revenue was up two per cent from Rs 8,184 crore in the quarter ended December 31, 2013.
The company announced interim dividend of Rs 4 per equity share of face value of Rs 2 each.

It added 8,291 people (gross) and 1,858 (net) employees, taking the total headcount to 90,190 as on March 31, 2014.

The company signed 12 transformational engagements this quarter and over $1 billion in total contract value, with Digital Systems Integration, ALT ASM and Infrastructure Management Services continuing to drive the momentum.

Financial and manufacturing led the wins in verticals, while the US and Europe in terms of geographies.

Americas grew 11 per cent year-on-year, Europe (26 per cent) and Rest of the World (4 per cent). The company added two clients each in $50 million and $30 million brackets.

"Our success with the industrialised delivery model, increasing number of contracts moving into steady state, savings on G&A front, helped in improved net income margin of 19.4 per cent this quarter, up from 15.9 per cent in the corresponding quarter of last year," HCL Technologies CFO Anil Chanana said.
Cash and cash equivalents stood at Rs 1,045.5 crore at the end of March 31, 2014.