HCL Tech profit rises 15.6% sequentially on order inflows

Written by fe Bureau | Bangalore | Updated: Aug 1 2014, 06:34am hrs
Indias fourth-largest IT services exporter HCL Technologies reported a 15.6% sequential rise in net profit (in dollar terms) for the quarter ended June, boosted by strong order inflows and a robust performance by its core infrastructure services vertical.

The results bettered Street expectations with sequential growth in revenue of 3.4% in US dollar terms, the second highest after TCS, which posted a 5.5% rise. The increase was 2% for Infosys and 1.2% for Wipro.

HCL Technologies, which follows the June to July fiscal, said the total contract value of the bookings in FY14 exceeds $5 billion and the consolidated revenue crossed the same figure. During the course of last fiscal, the company bagged contracts worth $500 million from PepsiCo and $400 million from DNB Bank Norway.

Anant Gupta, CEO, HCL Technologies, said, Backed by this solid performance, we remain confident in our ability to continue delivering industry leading growth. He was bullish about continuing with this performance in the current fiscal.

The net profit for the quarter ended June, 2014 stood at $305 million, annual growth of 44% while the revenue, at $1,407 million, showed a rise of 14.6%.

Ankita Somani, analyst, MSML Research, said HCL Technologies has a strong position in one of the fastest growing service vertical of infrastructure management services and on the back of this the company has been growing largely at par with its peers, but that too grew softer than expected during the quarter. The concern of weak growth in core software services have been shrugged off by the company in the current set of results and management indicated that the deal pipeline in this area of services continues to remains healthy.