IT major HCL Technologies posted a marginal rise in quarterly profit on Friday, but missed estimates, hurt by higher expenses. Net Profit came in at Rs 2,075 crore ($324.93 million) for the October-December quarter, from Rs 2,062 crore a year earlier.
IT major HCL Technologies posted a marginal rise in quarterly profit on Friday, but missed estimates, hurt by higher expenses. Net Profit came in at Rs 2,075 crore ($324.93 million) for the October-December quarter, from Rs 2,062 crore a year earlier, the software services exporter said in a stock exchange filing. Analysts on average had expected a profit of 21.57 billion rupees, according to data from Thomson Reuters. Total expenses rose 11 percent to Rs 104.72 billion in the quarter. Revenue from operations came in at Rs 12,809 crores, up 8.4% from Rs 11,814 crore in the same period last year. The company maintained its forecast for full-year revenue growth in a range of 10.5 percent-12.5 percent in constant currency terms. The company has also maintained its expected EBIT margins at 19.5% -20.5% in FY18.
HCL Tech said the board of directors has declared an interim dividend of Rs 2 per share for the financial year 2017-18. The record date of January 30, 2018 fixed for the payment of the interim dividend and the payment date of interim dividend will be February 5.
“Organic momentum has taken a step down for HCLT. Its 10.5-12.5 per cent CC guidance implies organic growth of around 5.5-7.5 per cent. EBIT margins are likely to shrink by 30 bps to 19.4 per cent because of continued investments in the business and slower organic growth,” Motilal Oswal had said in a note.
According to ICICIdirect.com, dollar revenues were expected to grow 1.8 per cent quarter on quarter (QoQ) to $1,962 million led by incremental contribution from acquisitions. However, rupee revenue could increase 2.1 per cent QoQ to Rs 12,701 crore in Q3FY18, the firm had said.
India’s fourth largest software firm HCL Technologies had reported a net profit of Rs 2,188 crore for the quarter ended September 30, 2017, up 8.6 per cent over the year-ago period. The company had maintained its 2017-18 revenue growth forecast at 10.5-12.5 per cent in constant currency terms. HCL Tech’s revenue stood at Rs 12,434 crore during the second quarter of FY2017-18, about 7.9 per cent higher than the same period previous year.