HCL Tech joins IT party with 69% net rise
HCL Technologies on Thursday joined IT industry peers Infosys and Tata Consultancy Services in beating street expectations with a solid October-December profit jump that sent its shares up by 4.3% at Rs. 703 on the BSE. HT reports.business Updated: Jan 17, 2013 22:56 IST
India’s fourth-largest software services provider HCL Technologies on Thursday joined IT industry peers Infosys and Tata Consultancy Services in beating street expectations with a solid October-December profit jump that sent its shares up by 4.3% at Rs. 703 on the Bombay Stock Exchange. That was accompanied by a leadership change, with Anant Gupta being named the new CEO.
The company said current president Anant Gupta immediately takes over as new chief executive officer replacing industry veteran Vineet Nayar, who would continue to hold the title of vice-chairman. HCL Technologies announced a 68.5% year-on-year rise in second quarter net profit at Rs. 965 crore against Rs. 573 crore a year ago. This was well above a Thomson Reuters analyst poll that expected Rs. 826 crore. The company follows a July-June fiscal year.
Revenue from IT services in infrastructure and financial sector, which grew by 10% during the quarter, boosted profits."Our quarterly results demonstrate increasing momentum… our net margin has improved for five straight quarters to reach 15.4%… This has been a quarter of great impetus, which has placed HCL in a position of advantage for leveraging market dynamics," said Vineet Nayar, vice-chairman.
Nayyar makes way for new CEO Gupta
Vineet Nayar has stepped as the chief executive officer of the company, passing the baton to Anant Gupta. Gupta, who was appointed as the chief operating officer in July last year, was since being groomed to formally take over executive functions at the company.
“Vineet Nayar will continue as vice chairman and joint managing director of the company till July 2013 and as vice chairman thereafter,” said Shiv Nadar, chairman and chief strategy officer, HCL Technologies.