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HCL Technologies net up 6% in Q3

HCL Technologies net up 6% in Q3

New Delhi: Software major HCL Technologies Ltd on Friday reported Rs 2,194 crore consolidated net profit for the third quarter (Q3) of fiscal 2017-18, posting 6 per cent annual growth from Rs 2,070 crore in the same period year ago and flat (0.3 per cent) sequential from Rs 2,188 crore quarter ago.

In a regulatory filing on the BSE, the Noida-based IT firm said consolidated revenue for the quarter under review (Q3) grew 8.4 per cent annually to Rs 12,808 from Rs 11,814 crore in the like period year ago and 3 per cent sequentially from Rs 12,434 crore quarter ago.

In dollar terms, net income, however, grew 11.2 per cent annually to $340 million for the quarter from $306 million in the same period year ago but flat (0.3 per cent) sequentially from $339 million in the like period quarter ago.

Consolidated revenue under the International Financial Reporting Standard (IFRS) grew 13.9 per cent annually to $1,988 million from $1,745 million year ago and 3 per cent sequentially from $1,928 million quarter ago.

The outsourcing firm maintained the revenue outlook for the fiscal at 12.1-14.1 per cent based on the average US dollar rate of Rs 65.5.

Operating margin (Ebit) is expected to be 19.5-20.5 per cent for 2017-18.

Earnings before interest and tax (Ebit) grew 4.2 per cent annually to Rs 2,510 crore from Rs 2,408 crore year ago and 2.4 per cent sequentially from Rs 2,451 crore.

In dollar terms, Ebit, however, grew 9.4 per cent annually to $389 million from $355 million year ago and 2.5 per cent sequentially from $380 million quarter ago.

Commenting on the results, HCL Chairman Shiv Nadar said the company continued to deliver socio-economic value for its diverse shareholders.

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“We remain focused on promoting diversity, localizing footprints and developing sustainable business models”, said Nadar in a statement later.

HCL Chief Executive C. Vijayakumar said on the occasion the quarter was strong in signing 20 transformational deals across services.

“This was a strong quarter for us in terms of deal signing (20) and revenue growth (11 per cent) annually in constant currency,” Vijaykumar noted.

Chief Financial Officer Anil Channa said the company had robust growth across mature geographies and key verticals like financial services and manufacturing.

“We have posted healthy return-on equity (RoE) at 27.3 per cent during last 12 months,” Channa added.

The headcount increased to 119,291 in the quarter from 111,092 year ago and 119, 040 quarter ago.

The Board of Directors recommended 100 per cent interim dividend of Rs 2 per share of Rs 2 face value for the fiscal year 2017-18. The payment will be made by February 5.

The company’s blue-chip scrip of Rs 2 face value was quoted at Rs 957.05 per share on the BSE in the post-noon trading session on Friday, gaining Rs 2.20 from Thursday’s closing rate of Rs 954.85 after opening at Rs 962.

— IANS