HCL Tech Q3 net up 9.4% q-o-q

Written by fe Bureau | New Delhi | Updated: Apr 18 2014, 10:33am hrs
Beating market estimates, HCL Technologies on Thursday posted sequential revenue growth of 3% at $1.36 billion for the third quarter ended March 31, 2014, compared with $1.32 billion posted in the trailing quarter.

On the other hand, the firm's sequential net profit was up 9.4% at $264.2 million from $241.6 million in the previous quarter. The stock of HCL Tech closed at R1,424.3 up 1.06% on the BSE.

Year-on-year, revenues rose 14.3% from $1.19 billion recorded in the quarter ended March 31, 2013, while net profit grew 39.9% from the year ago figure of $188.9 million.

HCL Tech added two clients each in the $50 million and $30 million categories in the quarter. It signed 12 transformational engagements in the quarter and over $1 billion in total contract value led by financial services and manufacturing verticals in the US and Europe.

We continue on our growth momentum with strong revenue growth along with the 10th straight quarter of margin expansion. Our Ebit has registered an impressive expansion of 7.1% sequentially and 44.5% y-o-y, resulting in a healthy Ebit margin of 24.6%. The application services business registered a robust performance led by digital systems integration proposition on the discretionary side and ALT ASM on the non-discretionary side this quarter. Infrastructure services have continued to punch their weight in the market, said Anant Gupta, president and CEO, HCL Technologies.Besides, the firm is eying capital expenditure of 3.4% of the revenue in this quarter.