Indian software exporter HCL Technologies Ltd. reported a higher stand-alone net profit for the second quarter, as per Indian GAAP, backed by higher incomes from all its business verticals. The company declared an interim dividend for the current fiscal year.
HCL Tech posted a second-quarter stand-alone net profit of Rs.724.72 crore or Rs.10.24 per share, higher by 46 percent than the Rs.493.97 crore or Rs.7.03 per share in the second-quarter of last year.
For the quarter under review, net income from operations increased by 26 percent to Rs.2,766.22 crore from the Rs.2,191.18 crore for the same period last year, while other income was Rs.39.92 crore, compared with the Rs.25.35 crore in the year-ago quarter.
During the quarter, income from ‘Software Services’ segment grew by 14 percent to Rs.1,965.20 crore from the Rs.1,719.01 crore in the year-ago quarter, while that of ‘BPO Services’ stood at Rs.163.07 crore, compared with Rs.135.93 crore in the year-ago quarter, an increase of 20 percent. Income from ‘Infrastructure Services’ surged by 90 percent to Rs.637.95 crore from the Rs.336.24 crore in the last year.During the quarter, the company’s 12 multi-year, multi-million dollar deals with Fortune 500/Global 2000 corporations, six of which are large integrated engagements. A majority of these engagements are from Americas and Europe, it said.
As at the end of the current quarter, the company’s manpower strength stood at 85,194, compared to the 85,335 in the preceding quarter. The company added 20 clients from Active Client Relationship during the quarter.
For the six months, HCL Technologies stand-alone net profit increased by 60 percent to Rs.1,424.56 crore from the Rs.891.52 crore for the same period last year. Total income, including other income, rose by 31 percent to Rs.5,546.56 crore from the Rs.4,245.30 crore in the corresponding period in the preceding year.
Consolidated Results – US GAAP
On a consolidated basis, the company reported second-quarter net income, as per US GAAP basis, of $177.5 million, compared with $111.6 million in the year-ago quarter, registering a 59 percent growth. Revenue for the quarter stood at $1,154.3 million, up by 13 percent from the $1,021.9 million for the quarter ended December 31, 2011.
For the six month period, its net income totaled $339.3 million, higher by 55 percent than the $218.6 million in the corresponding quarter of the preceding year. Revenue for the period grew by 12 percent to $2,268.1 million from the $2,024.0 million a year-ago.
The company elevated Anant Gupta as President and Chief Executive Officer effective from January 17, 2013 from the present position of President and Chief Operating Officer.
S. Madhavan was appointed as Additional Director effective from January 15, while Vineet Nayar would continue as Vice- Chairman and Joint Managing Director until July 2013 and as Vice-Chairman thereafter. His focus will be on relationship with key customers and leadership development, the company said.
The company’s Board recommended an interim dividend of 100 percent or Rs.2.00 per equity share of Rs.2 each for the fiscal year 2013. The payment date is January 31, 2013.
Chairman & Chief Strategy Officer Shiv Nadar said, “Calendar 2012 has been an exceptional year for HCL. While the entire industry saw a very difficult year, HCL fired on all cylinders.”
Commenting on the results, Vice-Chairman Vineet Nayar said, “On the back of this exceptional calender year performance, our quarterly results demonstrate increasing momentum…..All in all, this has been a quarter of great impetus which has placed HCL in a position of advantage for leveraging the changing market dynamics.”
President & CEO Anant Gupta commented, “Our growth this quarter was driven by Infrastructure and Financial Services, both growing in excess of ten percent sequentially. On the back of this industry-leading performance HCL is now ready to redefine the market with its Alternative Outsourcing mode. The AO approach consists of business-outcome aligned IT services delivered through alternate delivery models like ‘XaaS.”
HCL Tech. shares at the BSE are being traded at Rs.703.80, up Rs.29.55 or 4.38 percent on a volume of 575,000 shares.
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by RTT Staff Writer
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