1. HCL Technologies Q3 net grows 7.8% to Rs 2,070 crore

HCL Technologies Q3 net grows 7.8% to Rs 2,070 crore

India's fourth-largest software services exporter HCL Technologies reported a 7.8 per cent rise in consolidated net profit at Rs 2,070 crore for the third quarter ended December 2016.

By: | New Delhi | Published: January 24, 2017 9:51 AM
HCL Tech reported broad-based growth across all revenue segments with the Americas and Europe growing by 13.6 per cent and 17.6 per cent, respectively, year-on-year. (Twitter) HCL Tech reported broad-based growth across all revenue segments with the Americas and Europe growing by 13.6 per cent and 17.6 per cent, respectively, year-on-year. (Twitter)

India’s fourth-largest software services exporter HCL Technologies today reported a 7.8 per cent rise in consolidated net profit at Rs 2,070 crore for the third quarter ended December 2016. It had posted a net profit of Rs 1,920 crore in the year-ago period, it said in a BSE filing.

Consolidated revenues grew 14.2 per cent to Rs 11,814 crore in October-December as against Rs 10,341 crore in the same quarter of 2015-16.

In dollar terms, the company’s net profit increased 5.2 per cent to USD 306 million in the reported quarter while revenues grew 11.4 per cent to USD 1.74 billion.

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The company had guided for its 2016-17 revenues to grow 12-14 per cent (based on average exchange rates for 2016-17), which translates into 10-12 per cent in USD terms based on December 31, 2016 exchange rates.

“We expect our FY17 revenues to be in the middle of this range,” the company said.

It added that the acquisitions and IP-led partnerships announced after September 30, 2016, are likely to additionally contribute 0.6-1 per cent in revenues, depending on the date of consummation of the Geometric deal.

HCL Tech had announced the acquisition of Geometric in April last year in a USD 200-million share swap deal.

“We continue our robust financial performance with a revenue growth of 3 per cent q-o-q and 13.8 per cent y-o-y in constant currency terms. The richness in our offerings coupled with our Mode 1-2-3 growth strategy is helping us gain a higher share of our clients’ wallet reflected in the increasing revenue contribution from our Top 5, Top 10 and Top 20 customers,” HCL Technologies President and CEO C Vijayakumar said.

Revenues from fixed price and managed services contracts increased to 63.2 per cent this quarter from 61.3 per cent further strengthening the success in outcome based business model, he added.

HCL Tech reported broad-based growth across all revenue segments with the Americas and Europe growing by 13.6 per cent and 17.6 per cent, respectively, year-on-year.

For the quarter to December, HCL Technologies had cash and cash equivalents of Rs 2,214.5 crore.

Nine transformational deals were signed this quarter across service lines, industry verticals and geographies.

Total headcount stood at 1,11,092 at the end of December 2016, with a gross addition of 8,467 people.

The attrition for IT services on LTM (last twelve months) basis stood at 17.9 per cent. The company has announced a dividend of Rs 6 per share.

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