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HCL Tech Q1 Net grows 6.1% to Rs 2,171cr; shares rise over 3%

The company had posted a net profit of Rs 2,047 crore in the year-ago period, HCL Technologies said in a BSE filing.

business Updated: Jul 27, 2017 10:48 IST
HCL Tech,BSE,first quarter
Shares of the company rose by over 3 %, after HCL Tech posted stellar results.(Livemint)

India’s fourth-largest software services exporter HCL Technologies today reported 6.1 % increase in consolidated net profit at Rs 2,171 crore for the first quarter ended on June 30, 2017.

The company had posted a net profit of Rs 2,047 crore in the year-ago period, HCL Technologies said in a BSE filing.

Consolidated revenues grew 7.2 % to Rs 12,149 crore in April-June 2017 as against Rs 11,336 crore in the same quarter of 2016-17.

Shares of the company rose by over 3 % to Rs 918.90 in early trade on BSE after the results.

In dollar terms, the company’s net profit increased 10.3 % to USD 336.7 million in the reported quarter, while revenues grew 11.4 % to USD 1.88 billion.

HCL Technologies maintained its revenue growth guidance of between 10.5-12.5 % in constant currency terms.

“We continue to propel forward on our Mode 1-2-3 growth strategy, delivering a revenue growth of 2.6 % quarter-on-quarter and 12.2 % year-on-year in constant currency terms in Q1 FY2018,” HCL Technologies President and CEO C Vijayakumar said.

This quarter, HCL Technologies also expanded EBIT margins from 20 % to 20.1 %, through continued superior execution in core business, integration and assimilation of the acquired entities, as well as IP investments, he added.

HCL Technologies CFO Anil Chanana said the share buyback of Rs 3,500 crore was successfully concluded during the quarter.

“...together with the dividend per share of Rs 2 this quarter, is demonstrative of our balanced capital allocation focus,” he added.

HCL Tech reported broad-based growth across all revenue segments with the Americas and Europe growing by 16.9 % and 0.3 %, respectively, year-on-year.

Financial services grew at 19.2 %, manufacturing at 17.1 %, lifesciences and healthcare at 10.6 %, public services at 6.4 %, retail and CPG at 7.1 %. However, telecommunications, media, publishing and entertainment posted 2.7 % y-o-y decline in constant currency.

For the June quarter, HCL Technologies had cash and cash equivalents of Rs 1,226 crore.

During the quarter, 13 transformational deals were signed across service lines, industry verticals and geographies.

Total headcount stood at 117,781 at the end of June 2017, with a gross addition of 9,462 people.

The attrition for IT services on LTM (last twelve months) basis stood at 16.2 %. The company has announced a dividend of Rs 2 per share.

First Published: Jul 27, 2017 10:48 IST