HCL net up 8.64% in Q2; beats expectations

India’s fourth largest IT services company HCL Technologies on Wednesday reported 8.64% rise in its net profit at Rs 2,188 crore, compared with Rs 2,014 crore in the corresponding quarter last fiscal.

This is the highest growth rate reported by a Tier-1 technology company, as the sector is facing stress owing to tumultuous global scenario.

The gross profit of the company grew by 9.31% to Rs 4,226 crore from Rs 3,866 crore in the year ago period.

The revenues of the company also grew by 7.94% to Rs 12,434 crore, compared with Rs 11,519 crore in the corresponding quarter last fiscal year.

The company’s cash reserves stood at Rs 1,426 crore as on September 30, 2017.

Contrary to the industry trend, the company saw 1.07% increase in its head count from 1,17,781 at the end of June to 1,19,040 by September-end.

On the geographical front, America (62.4%) has been the biggest contributor to the company’s revenues in the quarter, followed by Europe (29.1%), and rest of the world (8.5%).

Based on the service mix, Infrastructure Services was the largest contributor to the revenues with a contribution of 35.9%, followed by Application Services (35.9%), Engineering and R&D Services (22.0%), Business Services (3.6%), during the quarter.

On the client vertical head, Financial Services, like other IT companies continues to be the major revenue contributor for the company, with one fourth of the revenue generated by the company coming from that particular segment.