HCL Technologies Net Down 11 Per Cent

New Delhi, Aug 30: | Updated: Aug 31 2002, 05:30am hrs
Under the pressure of falling billing rates and shrinking IT budgets, Shiv Nadar promoted software services company, HCL Technologies has reported 11 per cent decline in its bottomline (net income after provisions) for the financial year ended June 30, 2002, as per the US Generally Accepted Accounting Policy (GAAP).

The net income (after provisions) of the company for the fourth quarter ended June 30, 2002 has also plunged to almost half, quarter on quarter as well as year-on-year.

The net income (after provision) has touched Rs 68.9 crore in the fourth quarter, 48 per cent down from Rs 132.4 crore in the same quarter previous year and 47 per cent down from Rs 131.18 crore of the previous quarter in the same financial year.

The net income for the entire financial year has slipped to Rs 425.32 crore from Rs 480.12 crore of the previous year.

The company has made extraordinary provisions of Rs 61.2 crore for the doubtful debts (accounts recievables of more than 90 days) and markdown of investments (made in the venture capital funds) for the entire financial year.

The gross revenues of the company, however, have grown by 16 per cent in the financial year 2001-02, to Rs 1,629.27 crore from Rs 1,405.09 crore in the previous year. The revenues for the fourth quarter have also gone up by 17 per cent to Rs 432.3 crore from Rs 369.17 crore of the same quarter previous year.

Although the revenues are almost in line with the future outlook given by the company in mid financial year, the net profit is far below its expectations.

After announcing the second quarter results of the 2001-02, company chairman Shiv Nadar had projected revenues of Rs 1,666 crore and net income of Rs 505 crore for the entire year (after extra ordinary provisions of Rs 25 crore).

Mr Nadar, however, had declined to give any specific future guidelines after the third quarter results.

HCL Technology board has recommended a dividend of 75 per cent (Rs 1.50 per share on every share of Rs 2) for the year ended June 30, 2002.