HCL Tech net zooms 43%, shares rally
The company, despite an uncertain global macro-economic environment, exuded confidence for coming months wherein it expects to get business from the churn of existing IT deals.business Updated: Jan 17, 2012 21:22 IST
Software services firm HCL Technologies reported a robust 43% jump in its net profit year-on-year for the October-December quarter. The company, despite an uncertain global macro-economic environment, exuded confidence for coming months wherein it expects to get business from the churn of existing IT deals.
The optimism from HCL is in contrast to Infosys that had lowered its revenue outlook by a notch citing global uncertainties.
“Globally deals worth $47 billion (Rs 238,000 crore) will be up for renewal during the calendar year 2012. According to the existing trends there will be a 30% deal churn, which represents a $15 billion (Rs 76,000 crore) opportunity for us,” said Vineet Nayar, vice chairman and CEO of HCL Technologies. Nayar backed his optimism by explaining that during the last quarter HCL bagged 18 new transformational deals valued at $1 billion (Rs 5,100 crore).
Nayar said that macro-economic environment across the West continues to be grim with little signs of improvement. “There will be an adverse impact on the IT budgets of our client companies. So the way ahead for us lies in bagging the existing deals that come up for renewal.”
During the quarter, the company added 7,804 employees. HCL Tech’s stocks closed up 5% at Rs 425 on the BSE.