HCL Tech Q3 net profit up 59 pc at Rs 1,624 cr

New Delhi: IT services firm HCL Technologies today posted 59 per cent increase in net profit at Rs 1,624 crore for the quarter ended March 31, 2014. The Noida-based firm had posted a net profit of Rs 1,021 crore in the corresponding quarter of last fiscal (2012-13), HCL Technologies said in a statement. The company follows July-June fiscal. Its revenue for the reported quarter was up 29.8 per cent at Rs 8,349 crore from Rs 6,430 crore, in Q3 of FY'12. In dollar terms, the company's net profit grew 39.9 per cent to USD 264.2 million, while revenue rose 14.3 per cent to USD 1.36 billion in Q3 of FY'14 from year-ago period. "We continue on our growth momentum with a strong revenue growth of three per cent quarter-on-quarter along with 10th straight quarter of margin expansion," HCL Technologies President and CEO Anant Gupta said.

The Application Services business registered a robust performance led by Digital Systems Integration proposition on the discretionary side and ALT ASM (offering) on the non-discretionary side this quarter, he added. Sequentially, the net profit was higher by 8.5 per cent from Rs 1,496 crore and revenue was up two per cent from Rs 8,184 crore in the October-December 2013 quarter. The company has announced an interim dividend of Rs 4 per equity share of face value of Rs 2 each.

During the quarter, HCL Technologies added 8,291 people (gross) and 1,858 (net) employees, taking the total headcount to 90,190 as on March 31, 2014. The company signed 12 transformational engagements this quarter and over USD one billion in total contract value, with Digital Systems Integration, ALT ASM and Infrastructure Management Services continuing to drive the deal win momentum. Financial and manufacturing led the wins in verticals, while the US and Europe in terms of geographies. Americas market grew 11 per cent year-on-year, Europe (26 per cent) and Rest of the World (4 per cent). The company added two clients each in USD 50 million and USD 30 million categories.

"Our success with the industrialised delivery model, increasing number of contracts moving into steady state, savings on G&A front, helped in improved net income margin of 19.4 per cent this quarter, up from 15.9 per cent in the corresponding quarter of last year," HCL Technologies CFO Anil Chanana said. This has provided the company more room for making relevant investments in a rapidly changing market landscape, he added. The company's cash and cash equivalents stood at Rs 1,045.5 crore at the end of March 31, 2014.