HCL Technologies beat market expectations on Wednesday to record a 78% year-on-year jump in net profit at Rs 885 crore for its first quarter of 2012-13 in a performance that clearly outshone bellwether Infosys in a similarly challenging global environment.
Its stocks soared to touch a 12-year high at Rs 605.75 before ending down at Rs 580.30, up 1% for the day.
Revenues of the company, India's fourth largest IT services exporter after Tata Consultancy Services, Infosys and Wipro, rose 31% year-on-year at Rs 6,091 crore. TCS and Wipro are yet to unveil their quarterly results.
At the heart of HCL's march forward was a relatively low base that made growth easier and new aggression in winning European and US deals in a tough recession-hit market for outsourced software and business process outsourcing (BPO) deals.
"Increased wins in Fortune 500 accounts have resulted in Americas and Europe geographies growing at 34% and 37% year-on-year respectively," said Vineet Nayar, vice-chairman and CEO, HCL Technologies.
The results came a few days after Infosys disappointed markets with a muted outlook and lacklustre performance with respect to expectations. HCL Tech did not give full-year guidance but the 12 large deals that it won in the quarter and a strong deal pipeline has won market approval.
"HCL Tech is clearly emerging as a front runner and outperforming many of its peer companies," said Ankita Somany, analyst at Angel Broking.
"We maintain our positive view on the stock," said Rikesh Parikh of Motilal Oswal Securities, citing a strong deal pipeline that provided growth visibility.