HCL Tech beats peers, net up 67%

Software major HCL Technologies posted a 67% year-on-year jump in its net profit for the April-June quarter and exuded an optimism in its revenue outlook for the coming quarters despite an uncertain global economic environment.

Software major HCL Technologies posted a 67% year-on-year jump in its net profit for the April-June quarter and exuded an optimism in its revenue outlook for the coming quarters despite an uncertain global economic environment.

HT Image

Vineet Nayar, CEO and vice-chairman of HCL Tech attributed the strong growth to company’s strategy of broad basing its revenue streams across business verticals and service offerings. Nayar has been saying that a lot of new deals come to the company from the “churn” whereby global IT service providers are losing their deals to HCL Tech.

HCL Tech’s net profit for the quarter stood at R854 crore as compared to Rs. 510 crore during the same period a year ago. The total revenues stood at Rs. 5,919 crore that was up 38% year-on-year. On a full year basis, the revenues stood at Rs. 21,031 crore, up by 31% and its net profit rose by 48% at Rs. 2,526 crore. HCL Tech accounts its financial year from July till June.

The company’s results and confidence about business are in sharp contrast to its much bigger domestic rivals Infosys and Wipro, where the two firms posted a muted revenue outlook in the short-term.

On revenue growth rate, HCL matched India’s largest software exporter TCS.