HCL Tech Q4 net up 62%; beats f’cast

Its total income rose to Rs 1,949.36 crore during the reported period from Rs 1,330.61 crore in the corresponding quarter last fiscal,up 46.5 per cent on standalone basis.

“In these times of dynamic demand and swiftly changing customer priorities,HCL is focusing on building an innovation engine that is agile,business-aligned and employee driven,” HCL Technologies Vice Chairman and CEO Vineet Nayar said in a statement.

The company continues to balance this thought leadership with an equally rewarding financial performance quarter by quarter,he added.

For the year ended June 30,2011,the company reported a 30.75 per cent jump in its consolidated net profit at Rs 1,646.51 crore.

It had a consolidated net profit of Rs 1,259.19 crore during FY 2009-10.

The total income of the IT firm increased to Rs 15,730.43 crore for the year ended June 30,2011,as against Rs 12,136.29 crore in FY’10 on consolidated basis.

“We ended the financial year with impressive all round performance. Our revenues grew by 31 per cent year-on-year,net income grew by 35 per cent,while cash flow conversion (ratio of cash flow from operations to net income) stands at 100 per cent backed by efficient working capital management,” HCL Technologies CFO Anil Chanana said.

Cash and cash equivalents stood at USD 116.3 million as on June 30,2011. The board of directors of the company has recommended a final dividend of Rs 2 per equity share,taking the total dividend for the year to Rs 7.5 per share.

During the quarter,HCL Tech added 9,572 people (gross) and 3,626 employees (net),taking the total headcount to 77,046.

HCL Tech signed 20 transformational deals this quarter in industries like manufacturing,media and publishing,telecom,BFSI,retail,hi-tech and healthcare.

For the quarter ended June 30,2011,Americas contributed 61.5 per cent to the revenues,while Europe and Rest of the World (RoW) contributed 24.6 per cent and 13.9 per cent,respectively.

Shares of the company were trading at Rs 517.70 a piece at 0930 hours,up 0.56 per cent from its previous close on the BSE.

HCL Tech net profit up 52%; beats f’cast

(Reuters copy) HCL Technologies,India’s fourth largest software services firm,on Wednesday posted a better-than-expected 52 percent jump in net profit for April-June,as all its verticals and geographies posted strong growth.

The move is likely to cheer up the stock and the markets in general.

HCL,which counts Microsoft ,IBM ,HP and Oracle as parters,said consolidated profit rose to 5.11 billion rupees for April-June,compared with a profit of 3.37 billion rupees a year ago.

Revenue rose 27.5 percent to 43 billion rupees,on an average exchange rate basis.

A Reuters poll of brokerages showed analysts expected profit to rise 45 percent to 4.94 billion rupees,on revenue of 43.18 billion rupees.

India’s top three software firms,Tata Consultancy Services (TCS) ,Infosys Ltd and Wipro Ltd have all in the past weeks warned of a volatile global economy which may reduce client spending.

Growth in India’s $76 billion software services sector has slowed down in recent quarters due to global economic uncertainty,severe competition,rising wages,high staff turnover rates and management shakeups at Infosys and Wipro.

Most Indian IT firms see margins slipping sequentially for the June quarter,when they hike wages of employees – a key factor to tackle high attrition rates in the ultra-competitive industry.

HCL,which follows a July-June fiscal,however raises wages only in its fiscal first quarter,enabling it to post better margins compared to peers.

HCL,which added 3,626 employees on a net basis during April-June,said operating margin was almost flat at 18.5 percent for the period.

At 09:35 AM,HCL shares,valued at more than $8 billion,were down 1.16 percent at 509 rupees on the National Stock Exchange.

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