HCL Technologies, the country's fifth largest software service provider, has reported a sharp jump in net income in the latest quarter despite a stronger rupee that eroded export profits.
It registered a 40.6 per cent jump in revenues at Rs 1,577.1 crore for the third quarter ended March, compared with the corresponding quarter in the previous year. On a sequential basis, revenues increased by 7.6 per cent from Rs 1465 crore in second quarter that ended in December, 2006.
During the latest quarter, the company's net income jumped 72 per cent to Rs 331.8 crore from Rs 193 crore in the year-ago quarter. On a sequential basis, the growth was 15.9 per cent from Rs 286 crore in the quarter ending December, 2006. The quarter marked an important period for the company as it crossed the 40,000 employees mark.
In fact, the dollar depreciation has marginally affected growth. On a sequential basis, revenues and net income registered a growth of 9.5 per cent to $362.4 million and 17.9 per cent to $76.2 million in dollar terms.
"Global business trends, with the re-emergence of disruptive technologies and new business models suggest very exciting times," said Shiv Nadar, chairman and CEO. “We are on a firm footing to capitalize on these trend and uniquely shape the future,” he added.
During the latest quarter, the company signed five large transformational deals in the range of $25-50 million each and one valued at over $50 million, said Vineet Nayar, president, HCL Technologies. “Of these, four deals are in hi-tech and manufacturing and two deals are in financial services,” he added.
The momentum started in the last year in signing new large multi-service multi- year, multi million dollar deals continued, with the company adding 26 new marquee clients.
Revenues from the business process outsourcing (BPO) division rose 18.4 per cent sequentially to $49.7 million from $42 million in the previous quarter.