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HCL Technologies Reports 28 Percent Rise in Quarterly Net Profit

HCL Technologies Reports 28 Percent Rise in Quarterly Net Profit

By Press Trust of India | Updated: 30 January 2015 11:29 IST

India's fourth-largest software services exporter HCL Technologies today reported 28 percent rise in consolidated net profit at Rs. 1,915 crores for the second quarter ended December 2014 on growth in European business as well as life-sciences and healthcare verticals.

The city-based firm, which follows July-June fiscal year, had posted a net profit of Rs. 1,496 crores in the year-ago period, it said in a BSE filing.

Consolidated revenues grew by 13.4 percent at Rs. 9,283 crores in the October-December 2014 quarter as against Rs. 8,184 crores in the same quarter of the previous fiscal.

In the July-September quarter, the firm had reported a net profit of Rs. 1,873 crores and revenues of Rs. 8,735 crores.

"The Global IT industry is undergoing a seismic change as the scope of IT buying expands to capture adjacencies beyond IT. This is not only changing the contours of the traditional buyer as we know it but also bringing technology to the very centre stage of organisational competitiveness," HCL Technologies Chairman and Chief Strategy Officer Shiv Nadar said.

In such a scenario, a balanced portfolio, integrated IT services and engineering capabilities have ensured that HCL remains service provider of choice for companies looking for business model transformation, he added.

In dollar terms, the company's net profit rose by 27.3 percent to $307.2 million (roughly Rs. 1,898 crores) in the reported quarter, while revenues grew 12.8 percent to $1.43 billion (roughly Rs. 8,837 crores).

"Our continued focus in developing next generation propositions around digitalisation, engineering platform services and target operating model for enterprise IT have allowed us to stay ahead of the innovation curve and gain significant market share in the global IT services market," HCL Technologies President and CEO Anant Gupta said.

For the quarter ended December, HCL Technologies had cash and cash equivalents of Rs. 1,221 crores.

The company signed 15 transformational engagements during this quarter with more than $1 billion (roughly Rs. 6,179 crores) of total contract value (TCV).

Total headcount of the company crossed the one lakh mark to stand at 1,00,240 at the end of December, with gross additions at 11,734 and net at 4,718.

The attrition for IT services on LTM basis stood at 16.4 percent.

In order to expand the retail base, the company's Board has recommended issuance of bonus shares in the ratio of 1 share for every 1 share held.

It also declared an interim dividend of Rs. 8 per equity share of Rs. 2 each.

Shares of the company were trading 9.67 percent up at Rs. 1,805 apiece during morning session on the BSE.

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