HCL Corporation: No plans to sell HCL Technologies

Written by PTI | New Delhi | Updated: Feb 22 2014, 19:44pm hrs
HCL Technologies, HCL'HCL Corporation denies any plans to exit HCL Technologies,' it said in a statement. Reuters
Shiv Nadar-led HCL Corporation, the firm that controls HCL Technologies and former PC maker HCL Infosystems, today said there are no plans to sell its IT services firm.

The company has also denied reports of HCL founder Nadar seeking potential buyers for the country's fourth largest software services exporter, HCL Technologies.

"HCL Corporation denies any plans to exit HCL Technologies," it said in a statement.

Reacting to reports of sale of HCL Technologies, its scrip rose by 2.99 per cent to Rs 1,539.70 in the afternoon trade on the BSE.

According to analysts, HCL Technologies has been consistently performing well in the past few quarters and the firm beat market estimates in the October-December 2013 quarter to post healthy results.

It reported a 58.4 per cent rise in consolidated net profit at Rs 1,496 crore for the second quarter ended December 31, 2013 against Rs 944 crore in the year-ago period.

Consolidated revenues grew by 30.4 per cent at Rs 8,184 crore in the October-December quarter of this fiscal against Rs 6,278 crore in the same quarter of the previous fiscal.

Historically, operating margins have been a concern for HCL, but now the company has consistently posted an increase in operating margins for the past six quarters.

Founded in 1991, HCL Technologies provides IT and engineering services expertise covering financial services, manufacturing, consumer services, public services, and healthcare among others.

With a turnover of USD 5 billion, the firm has global offshore infrastructure and network of offices in 31 countries and employs over 88,000 people.