HCL Tech Q3 Net Up 9% At Rs 97.5 Crore

New Delhi | Updated: Apr 27 2004, 05:30am hrs
HCL Technologies has posted a net profit of Rs 97.48 crore for the third quarter ended March 2004 as compared to a net profit of Rs 89.4 crore for the corresponding quarter of the previous year, an increase of 9.01 per cent.

The total income has increased by 22.14 per cent to Rs 287.4 crore in the third quarter ending March 2004 against Rs 235.39 crore in the same quarter previous year.

However, as per the US GAAP, the company reported a net income of Rs 122.9 crore in the third quarter ending March 2004, up by 53 per cent, from Rs 79.8 crore in the same quarter previous year.

The company recorded a gross revenue of Rs 647.2 crore in the third quarter (2003-04) as against Rs 465.81 crore in the corresponding quarter last year, a jump of 38.9 per cent.

The companys BPO gross revenue is up by 27 per cent in the third quarter ending March 2004 to Rs 70.87 crore from Rs 55.6 crore in the second quarter for same year.

On the other hand, the gross revenue for its software services is marginally up by 1 per cent to Rs 522.06 crore against Rs 515.4 crore in the second quarter 2003-04.

It declared an interim dividend at 100 per cent (Rs 2 per share) in line with policy to declare quarterly dividends.

The company added 26 new customers during the quarter taking the total customer base to 454. The customers include 61 Fortune 500 clients and 104 clients with a run rate of over $1 million. The US contributed 58.7 per cent, Europe 23 per cent and Asia Pacific 18.3 per cent to HCLTs total revenue.

It added 1,718 employees during the quarter, of which 682 employees were added in software services and 922 in HCL BPO.

The current annualised attrition rate is 14.6 per cent.

Capital expenditure of Rs 57.55 crore was incurred during the quarter. A new software development centre was commissioned in Q3 at Gurgaon, with a planned seat capacity of 600. Total seat capacity for the organic software business now stands at 8,635. Commenting on the companys performance, HCLT chairman and CEO Shiv Nadar said, Our financial performance this quarter is largely in line with our expectations, with further momentum in the topline and an expansion of operating margins. We have rationalised our cost structures, propelled the JVs on a fast track and integrated operations in a way that has unleashed significant synergies, whereby our profitability is back on track.

HCLT won a large outsourcing contract for application development and maintenance from a leading multinational publishing and information services company, with operations in 25 countries. The companys core markets are spread across the health, tax, accounting, corporate/financial, legal/regulatory and education sectors.

Like other software companies in India, HCLT too has been impacted by the rupee appreciation. Rupee appreciation has impacted us and there has been a 5.5 per cent decline due to this on both topline and bottom line, HCLT executive vice-president (corporate finance) SL Narayanan said.