HCL Tech quarterly profit up 32%, shares fall

  • Reuters, Mumbai
  • Updated: Oct 17, 2014 14:46 IST

HCL Technologies Ltd, India's fourth-largest software services exporter, posted a 32% rise in quarterly net profit, beating estimates, as sales in the Americas, the company's biggest market, rose.

Shares in HCL Technologies, however, fell more than 8% on Friday, as the technology outsourcing company's revenue growth of 12.8% in dollar terms was below street expectations, stock market dealers said.

For most IT services companies, analysts and investors track the dollar sales numbers as clients oversees get billed in that currency.

HCL earned Rs 1,873 crore ($303.44 million) in profit in the September quarter, compared to Rs 1,416 crore last year. Analysts, on average, were expecting the profit to be at Rs 1,729 crore, as per Thomson Reuters data.

HCL relies heavily on contracts to manage data centres and networks for revenue growth, whereas peers Tata Consultancy Services Ltd and Infosys Ltd earn a greater proportion of revenue from higher-margin software services.

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