Despite dollar depreciation and turmoil in the US financial and mortgage markets, Indian software companies continue to register robust growth. HCL Technologies, one of the top five software companies in the country, has reported an increase in net income by 3.2 per cent to Rs 342.5 crore in its third quarter ended March 2008, from Rs 331.8 crore in the same period last year.
During the period, the company’s revenues grew by 23.3 per cent to Rs 1,944.8 crore from Rs 1,577.1 crore. In dollar terms, the year-on-year growth was 12 per cent in net income at $85.4 million ($76.2 million last year). The revenues grew by 33.8 per cent on yearly basis to $484.9 million in January-March, 2008 from $363.4 million in the same period last year.
The company’s share price registered a smart gain of 6.78 per cent or Rs 15.60 to close at 245.80.
In a bid to insulate itself from currency fluctuation, the company has hedged $2.5 billion — equivalent to 10 quarters’ receivables. “Our strategy to use hedging longer term revenues stream has helped the company in insulating the current volatility and given relatively longer period to be ready for dollar depreciation,” said Shiv Nadar, chairman & chief strategy officer, HCL Technologies.
During the year, company has decided to limiting hiring to 9,000 heads, as against the original target of 12,000 in the beginning of the year, said Vineet Nayar, CEO HCL Technologies.