HCL Technologies Q3 net rises 23 per cent
By The Q3 results announced | 25 Apr 2006
The Q3 results announced by HCL Technologies were marginally below market expectations and stock was beaten down after the numbers were announced. Quarterly revenues crossed the $250-million mark for the first time and the company is on track to report full year revenues of over $1 billion for the year ending June 2006.
For the third quarter ended 31 March 2006, HCL Tech has reported a consolidated net profit of Rs192.9 crore, an increase of 22.7 per cent from Rs157.3 crore reported for the same quarter of previous year. Consolidated revenues for the quarter increased 30.7 per cent to Rs1,122 crore from Rs858.2 crore.
Q3 profits have increased 6.5 per cent when compared to Rs181.1 crore reported for the second quarter ended December 2005. Revenues rose 6.4 per cent on a quarter on quarter basis from Rs1,054.2 crore.
Direct costs for the quarter increased 6.3 per cent from Q2 while SG&A expenses rose 8.9 per cent. Depreciation was higher by 7.3 per cent. On a quarter on quarter basis, gross margins were stable at 37.81 per cent as compared to 37.74 per cent. Gross margins were at 36.7 per cent for the prior year quarter.
Forex losses declined to Rs1.3 crore during Q3 from Rs13.2 crore reported for Q2.
For the nine months ended 31 March 05, the company has reported a consolidated net profit of Rs542.1 crore, an increase of 22.9 per cent from Rs441.1 crore for the same period of last year. Consolidated revenues for the period rose 23.54 per cent to Rs3,150.5 crore from Rs2,408.8 crore.
During the last quarter, HCL signed a multi-year outsourcing deal with UK based DSG International. Though the total value of contract has not been revealed, the company claims this is the single largest such deal signed by an Indian company.
The company had merged five companies including HCL Technologies BPO Services and HCL Enterprise Solutions and DSL Software with effect from 01 April 2005.
The company exited all its venture capital investments during the quarter at a marginal profit of $1.5 million.