HCLT posts 72.6% jump in net profit for Jan-Mar quarter
Country’s fourth largest software services firm HCL Technologies today posted better-than - expected performance with 72.6 per cent jump in quarterly profit, driven by strong growth in infrastructure services.
HCL Technologies’ net profit zoomed to Rs 1,039.9 crore for the third quarter ended March 31, 2013, from Rs 602.5 crore in the January-March quarter of 2012. It follows July-June fiscal year. The company’s performance is encouraging for the sector in view of that fact that IT bellwether Infosys reported just over 3 per cent growth in its net profit.
HCL Tech’s revenues stood at Rs 6,424.6 crore during the reported quarter, up 23.2 per cent from Rs 5,215.6 crore in the same quarter last year. However, the company’s shares were trading lower by 1.01 per cent compared to its previous close on the BSE in the afternoon. “Amidst a challenging and uncertain business environment, HCLT continues on its growth trajectory fuelled by its Alternative Outsourcing (AO) approach, led by two unique value propositions of Alternative ASM and Enterprise Function as a Service (EFaaS),” HCL Technologies president and CEO Anant Gupta told reporters here.
During the quarter, the company added 37 new customers, including one $100 million client. HCLT has won over $1 billion in large multi-year deals and over 90 per cent of them were from rebid market and more than 50 per cent are integrated deals.
Gupta said the deal pipeline is growing, and the first two quarters - July to December - of the 2013-14 fiscal are expected to be better. “Strong set of results from HCL Tech shrug off any concerns regarding health of Indian IT industry which were raised because of weak performance by Infosys. We continue to be positive on the stock,” Angel Broking Research Analyst (IT and Telecom) Ankita Somani said.
Gupta said that while non-discretionary spending and the renewal market is still driving growth, clients are still cautious on discretionary spending. IT companies, which get 80 per cent of their revenues from US and Europe, have been cautious about the challenging business environment.
Country’s largest software services firm TCS will announce its fourth quarter, 2012-13, results this evening. Gupta added that growth in margins has come from better realisation, efficiency and foreign exchange gains.
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