HCL Tech Q3 net profit up 59% at Rs 1,624 crore
IT services firm HCL Technologies on Thursday posted 59% increase in net profit at Rs 1,624 crore for the quarter ended March 31, 2014.business Updated: Apr 17, 2014 12:46 IST
IT services firm HCL Technologies on Thursday posted 59% 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 were up 29.8% 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% to $264.2 million, while revenue rose 14.3% to $1.36 billion in Q3 of FY'14 from year-ago period.
"We continue on our growth momentum with a strong revenue growth of 3% 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% from Rs 1,496 crore and revenue was up two% 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 $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% year-on-year, Europe (26%) and Rest of the World (4%).
The company added two clients each in $50 million and $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% this quarter, up from 15.9% 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.