HCL Tech Q3 net up 34%

Software services firm HCL Technologies posted a 34.2% rise in net profit at R400 crore for the quarter ended December 31, 2010, compared with the same period a year ago.

Software services firm HCL Technologies posted a 34.2% rise in net profit at Rs 400 crore for the quarter ended December 31, 2010, compared with the same period a year ago.

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The robust showing, which beat market expectations, came in the backdrop of a strong performance in non-traditional markets.

The company’s revenues for the quarter stood at Rs 3,888 crore, up 28% from a year ago.

“The dynamic demand environment necessitates a sharp focus on innovation and tangible value generation for customers," said Vineet Nayar, vice chairman and CEO of HCL Technologies. He added that the demand continues to be strong.

Revenues of the company from markets other than US and Europe — principally Japan, Latin America and Australia — grew by an impressive 60% during the quarter as compared to a year ago. Its revenue grew by 20% from Europe and 33% from North America on an year-on-year basis.

The company’s EBIT (earnings before interest and taxes) margins for the quarter stood at 13.1% and it expects them to increase further by 200 basis points during the next two quarters of its fiscal. HCL Technologies reports its financial year from June till July.

The company also announced a dividend of Rs 2 per equity share.

Shares of HCL Tech rose 4% and closed at Rs 508 on Bombay Stock Exchange on Wednesday.