HCL recovers quarterly in profit; annually in revenue

Software major HCL Technologies Ltd has recovered quarterly in net profit and annually in revenue in second quarter (October-December) of its calendar year (July 2015-June 2016), growing at double digit in rupee terms.

"Our consolidated net profit grew 11.2 percent sequentially to Rs.1,920 crore for the quarter under review (Q2) from Rs.1,726 crore quarter ago (July-September) but fractionally 0.2 percent from Rs.1,915 crore year ago same period in rupee terms," the IT bellwether said in a statement here on Tuesday.

The Noida-based listed firm said consolidated revenue for the quarter rose 11.4 percent annually to Rs.10,341 crore from Rs.9,283 crore in like period year ago and 2.4 percent sequentially from Rs.10,097 crore in first quarter (Q1).

Revenue in constant currency is up 9.3 percent annually and 2.1 percent quarterly.
Under the International Financial Reporting Standard (IFRS) or in dollar terms, net income for the quarter increased 10.3 percent sequentially to $291 million from $264 million in first quarter but declined 5.4 percent annually from $308 million.

Revenue increased 5.1 percent annually to $1,566 million from $1,491 million year ago same period and 1.4 percent sequentially from $1,545 million quarter ago.

"Our performance in this (second) quarter continues to reflect the return from the investments we have been making. The return on equity for calendar 2015 at 29 percent has been amongst the best in the industry," HCL chief financial officer Anil Chanana said in the statement.

Growth was broad-based across revenue segments, led by engineering and R&D (research and development) services at 23 percent, business services at 23.9 percent and infrastructure services at 16.4 percent on constant currency basis.

"Though we faced a challenging situation from Chennai floods in December, our resilient business models, business continuity and disaster recovery practices helped us face it well," HCL chief executive Anant Gupta recalled.

The company added three $50-million clients, five each in $30-million and $20-million segment.

"As a company with corporate governance and robust financial performance, we create value for businesses we operate by being at the forefront of market dynamics," HCL Chairman and chief strategy officer Shiv Nadar asserted.

The company booked business to the tune of $1 billion in total contract value, including eight transformational deals across service lines and industry verticals.

"As part of our enterprise blueprint, our investments and focus on aBeyond Digital, Next-Gen ITO and IoT works are enabling us to stay ahead of the curve and achieve a healthy business growth and financial performance," Gupta added.

The company added (gross) 6,234 techies in second quarter, as against 7,889 quarter ago and 11,734 year ago, taking total headcount to 103,696, as against 105,571 quarter ago and 100,240 year ago.

"Attrition went up marginally to 16.7 percent on annualised basis from 16.3 percent quarter ago and 16.4 percent year ago," the statement added.