HCL Tech net up 3 per cent

HCL Tech net up 3 per cent

Last Updated: Wed, Oct 20, 2010 19:30 hrs

HCL Technologies, the country’s fourth-largest information technology (IT) services exporter, today posted a 3.1 per cent rise in its September quarter net profit at Rs 331.1 crore, compared to Rs 321.3 crore in the year-ago quarter. Revenues during the first quarter rose 21.9 per cent to Rs 3,708 crore, from Rs 3,042.5 crore. HCL follows a July-June financial year.

"We continued our growth momentum by posting another quarter of high sequential growth, which is balanced across segments, with three out of seven verticals witnessing a double-digit quarter-on-quarter growth and all our business lines showing strong momentum," said Vineet Nayar, chief executive officer of HCL Technologies.

However, increased wage costs and a rise in selling, general and administrative expenses led the company to register a 1.6 per cent decline in sequential net income from Rs 336.5 crore in the trailing quarter. On a quarter-on-quarter basis, revenue rose 10 per cent from Rs 3,372.2 crore.

HCL Technologies added 5,661 employees during the quarter, thereby taking the total headcount to 70,218.

This is the second consecutive quarter when the company added more than 5,000 employees. The company posted a foreign exchange loss of Rs 65.5 crore and has $537 million (Rs 2,362 crore) on its balance sheet.

"HCL Technologies’ results once again validate the strong traction in volumes for leading Indian IT companies. Going forward, sustenance of operating margins in a narrow band will be important for HCL Technologies," said Dipen Shah, senior vice-president – PCG Research, Kotak Securities. The company posted a volume growth of 7.6 per cent. HCL added 48 new clients, including 14 major deals across the sector.

HCL Technologies’ shares closed 3.01 per cent down at Rs 425.85 on the Bombay Stock Exchange.

Vineet Nayar named vice-chairman
HCL Technologies has appointed Vineet Nayar as its vice-chairman, effective from November 1. He shall continue to be the CEO and whole-time director of the company.

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