Growth across business verticals and key geographies helped India's fourth-largest IT services exporter, HCL Technologies...
Growth across business verticals and key geographies helped India’s fourth-largest IT services exporter, HCL Technologies, report a 2.3% sequential rise in net profit for the quarter ended December at Rs 1,915 crore. Year on year, net profit rose an impressive 28%.
With this, HCL outperformed peers like TCS, Infosys and Wipro in terms of revenue growth, clocking Rs 9,283 crore, up 6.3% sequentially and 13.4% year-on-year. Buoyed by these numbers, the stock gained 9% to end at Rs 1,794.10 on the Bombay Stock Exchange on Friday.
Commenting on the results, Dipen Shah, head – private client group research, Kotak Securities, said, “The sharp growth in revenues has come after the moderation seen in the past few quarters. While Q2 results reflect improved growth as well as better quality, we will watch for the continuation of the trend.”
The HCL Technologies board has also recommended issue of bonus shares in the ratio of 1:1. The company said this was done to encourage participation of small investors, increasing the stock’s liquidity and expanding the retail shareholder base.
HCL Technologies president and CEO Anant Gupta said, “We have posted yet another strong quarter with constant currency revenue growth of 6.2% q-o-q and 16.2% y-o-y. Our continued focus in developing next-generation propositions around digitalisation, engineering platform services and target operating model for enterprise IT have allowed us to stay ahead of the innovation curve and gain significant market share in the global IT services market.”
In dollar terms, profit growth for the quarter remained flat but it rose 27.3% y-o-y. Revenue rose to $1,491 million, sequential growth of 4%. The company said its constant currency growth of 6.2% was the highest in the last 16 quarters.
HCL said it signed 15 transformational deals during the quarter with more than $1 billion in total contract value, cutting across services service lines and verticals. The IT major also managed to bring down marginally its attrition level in the December quarter to 16.4%.