HCL Tech Q2 results announced: Top 10 key takeaways

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Updated: January 19, 2016 11:10:50 AM

For the quarter ended December 2015, consolidated net profit of the IT major grew 11.2 per cent quarter-on-quarter and 0.2 per cent year-on-year to Rs 1,920 crore.

HCL-print660HCL Technologies reported 0.2 per cent rise in consolidated net profit at Rs 1,920 crore for the second quarter ended December 31, 2015.

HCL Technologies, fourth-largest software services exporter, announced its second quarter results on Tuesday before market hours. The IT major follows July-June as financial year. Post the announcement of results, the share price of HCL Technologies fell as much as 5 per cent in the early trade. At 10.23 am, shares of HCL Technologies were trading 2.77 per cent down at Rs 819.95.

Here are top 10 key takeaways from HCL Technologies Q2 results

Net Profit: For the quarter ended December 2015, consolidated net profit of the IT major grew 11.2 per cent quarter-on-quarter and 0.2 per cent year-on-year to Rs 1,920 crore. The company earned net profit of Rs 1,915 crore in the year-ago period.

Revenue: Consolidated revenues grew 11.4 per cent at Rs 10,341 crore in the October-December quarter as against Rs 9,283 crore in the same quarter of the 2014-15 fiscal.

Cash and Cash Equivalents: For the quarter ended December, HCL Technologies had cash and cash equivalents of Rs 1,762.3 crore.

From the desk of President: “Our investments and focus on BEYONDigital, Next–Gen ITO and IoT WoRKS is enabling us to stay ahead of the curve and achieve a healthy business growth and financial performance. We have achieved a revenue growth of 13.5 per cent YoY in constant currency terms this calendar year”, said Anant Gupta, President & CEO, HCL Technologies Ltd. “Earlier this quarter, we faced the challenging Chennai situation. Our resilient business models, robust business continuity and disaster recovery practices, coupled with tremendous support from all our clients and employees helped us face the challenge extremely well.”

Total Contract Value: The company signed 8 transformational engagements during this quarter with more than dollar one billion of total contract value (TCV).

Attrition: The attrition for IT services on LTM basis stood at 16.7 per cent. It was at 16.4 per cent in the corresponding quarter last year.

Dividend: HCL Technologies also declared an interim dividend of Rs 6 per equity share of Rs 2 each for the year 2015-16. This is the 52nd consecutive quarter of dividend payout for HCL Tech. The company also informed BSE that the payment date of the dividend shall be February 04, 2016.

What CFO said: “Our performance in this quarter continues to reflect the return from the investments we have been making. The return on equity for calendar 2015 at 29 per cent has been amongst the best in the Industry”, said Anil Chanana, CFO, HCL Technologies.

Global Trend: Geographical trends were mixed for HCL Tech with Americas growing 5.5 per cent qoq and Europe/RoW declining by 2.4 per cent/3.4 per cent, respectively.

Ebitda margin: Internet-enabled and digital business boosted the company’s Ebidta margin to 21.5 per cent during the latest quarter from 20.7 per cent in the previous quarter, and 25 per cent during the same period a year earlier.

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