1. HCL Tech Q4 net slips 2.8% to Rs 1,783 crore

HCL Tech Q4 net slips 2.8% to Rs 1,783 crore

HCL Technologies Ltd on Monday announced its June quarter results and said that it has posted a 5.94 per cent rise in net profit to Rs 1,783 crore.

By: | Updated: August 3, 2015 5:12 PM
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HCL Tech Q4 results: The company’s revenue rose by 5.5 per cent sequentially to Rs 9,777 crore for the quarter ended June 30.

The net profit of HCL Technologies registered a sequential increase of 5.9% for the quarter ended June, 2015 to Rs 1,783 crore. The revenues during this period grew sequentially by 5.5% to Rs 9,777 crore.

However, on a year-on-year basis, the net profit of HCL Technologies for the quarter ended June dipped by 2.8% in rupee terms while in US dollars it was down 8.8%.

In US dollars, the sequential rise in revenue for the quarter was 3.2% to reach $1.5 billion. The net profit stood at $279 million. The Earnings before interest and tax (EBIT) declined by 2.8% on a sequential basis for the quarter to $308.7 million and also fell on a year-on-year basis to 9.4%. The company attributed this drop in margins to its investments made into technology.

HCL Technologies which follows the July-June fiscal, also reported the full year numbers with consolidated revenue rising by 12.6% to Rs 37,061 crore while the net profit rose by 13.9% to Rs 7,254 crore.

In US dollars, the revenue rose 11.1% for the fiscal to $5.9 billion while the net profit was $1.1 billion recording an increase of 12.2%.

The results of HCL Technologies mirrors the trend witnessed in the Indian IT services industry which saw a rise in revenues but there was a dip on the profits which is largely due to pricing pressure, wage increase and currency fluctuations.

For the fiscal, infrastructure services, which is the mainstay of HCL Technologies’ business exceeded revenue of $2 billion. The engineering and R&D services crossed $1 billion in revenue.

Commenting on the results, HCL Chairman and chief Strategy Officer Shiv Nadar said, “ The 21st Century Enterprise is witnessing both new threats and opportunities in an environment which is dynamic. In many ways, culture is becoming increasingly important to navigate these challenging times and HCL’s philosophy of ‘Relationship Beyond the Contract’ has ensured that highly engaged employees have been able to create value in unexpected ways for clients. This has led to a strong growth performance, but more satisfyingly, very high levels of customer delight for us.”

HCL Technologies CEO & President Anant Gupta said during FY15 it has signed 58 deals with more than $5 billion in total contract value.

The employee headcount at the end of the June quarter stood at 106,107 though its attrition level rose to 16.5% as compared to 16.2% in the sequential quarter.

Shares of HCL Technologies plunged 6 per cent on Monday after the company reported a decline in consolidated net profit for the fourth quarter ended June 30.  After a weak opening, the stock further lost 5.24 per cent to Rs 944.35 on BSE.  On NSE, it slumped 6 per cent to Rs 941.60.

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