HCL Tech’s October-December net up 58% at Rs1,496 crore

HCL Technologies, India's fourth largest software services exporter, has reported a 58.4-per cent year-on-year increase in its net profit at Rs1,496 crore for the quarter ended 31 December 2013 against a net profit of Rs944 crore in the corresponding quarter of the previous year.

Chennai-based HCL, which follows July-June fiscal year, had posted a net profit of Rs944 crore in the year-ago period, it said in a BSE filing.

Consolidated revenue rose 30.4 per cent year-on-year to Rs8,184 in the October-December quarter, on the back of growth in manufacturing and infrastructure services.

Revenues grew 2.8 per cent quarter-over-quarter to Rs8,184 from Rs7,961 crore reported in the previous quarter.

In dollar terms, HCL Technologies' revenues in the December 2013 quarter were up 4 per cent quarter-over-quarter at $1321.3 million.

HCL had reported a net profit of Rs1,416 crore and revenues of Rs7,961 crore in the July-September quarter.

Commenting on the performance, HCL Technologies chairman and chief strategy officer Shiv Nadar said, ''As a company HCL has always differentiated itself on two key pillars - corporate excellence and governance, and trust through transparency and flexibility. Our sustained efforts in these areas continue to be recognised.''

The company said its net income margin has improved to 18.3 per cent from 15 per cent last year.

''The company crossed many milestones during the quarter with CY13 revenues crossing the $5-billion landmark. In addition to infrastructure services, Europe geography and manufacturing vertical each crossed $1.5 billion in revenues,'' said Anant Gupta, president and CEO.

For the year ended 31 December 2013, HCL Technologies had cash and cash equivalents of $135.1 million compared to $96.8 million at the end of September 2013.

''The asset light model reflected by our fixed asset turnover at 10x of revenues, and efficient working capital management, continued to keep the return on equity at a historic high of 35 per cent and operating cash flows in excess of 100 per cent of net income,'' HCL Technologies CFO Anil Chanana said.

The company added six clients during the October - December quarter, taking the total clients to 844.

Total headcount of the company stood at 88,332 for the period, with gross additions at 7,593 and net at 1,136.

The company's stock was trading at Rs1350.10, up 1.10 per cent from its previous close on the BSE.