HCL Technologies registered a 24 per cent jump in revenues to Rs 1,816 crore in the second quarter ended December 2007 from Rs 1,465 crore in the corresponding period of 2006-07. During the period, net income increased by 16.3 per cent to Rs 332.9 crore as compared with Rs 286.2 crore in the same period of the previous year.
Sequentially, its revenues and net income increased by 6.3 per cent and 7.9 per cent, respectively, from Rs 1,709.2 crore and Rs 308.4 crore. "We continue to hedge dollar income in a aggressive way to insulate downward risk," said Vineet Nayar, president of HCL Technologies. The company has already taken forward cover of $2.3 billion, which will be sufficient to take care of the dollar income of the next 10 quarters.
Nayar said the company had a sufficient cushion to withstand further dollar depreciation. "Normally, a 1 per cent dollar depreciation squeezes margins by 40 basis points. However, in our case the actual impact is much lower and, in fact, we have been able to maintain a sequential growth of over 8 per cent for last seven quarters," he added.
The company plans to make a capital expenditure of Rs 600 crore in 2007-08. Of this around Rs 225 crore have been spent in the first six months. In the previous financial year, the company had spent around Rs 350 crore on capital expenditure.