HCL Tech Q3 net profit up 3.6% on robust demand

IT services firm HCL Technologies on Tuesday reported a 3.6 per cent increase in net profit at Rs 1,683 crore (Rs 16.83 billion) for the quarter ended March 31, 2015.

The Noida-based firm had posted a net profit of Rs 1,624 crore (Rs 16.24 billion) in the corresponding quarter last fiscal, HCL Technologies said in a statement.

The company follows July-June fiscal. Its revenue for the reported quarter was up 11 per cent at Rs 9,267 crore (Rs 92.67 billion) from Rs 8,349 crore (Rs 83.49 billion) in the corresponding period a year ago.

However, on sequential basis, the net profit declined by 12.2 per cent from Rs 1,915 crore (Rs 19.15 billion) in Q2 FY2014-15 and revenue dipped 0.2 per cent from Rs 9,283 crore.

In dollar terms, the company's net profit grew 2.3 per cent to $270 million, while revenue rose 9.5 per cent to $1.49 billion in Q3 of FY15 from the year-ago period.

"HCL continues to deliver broad-based growth across geographies, verticals and horizontals.

This quarter saw our revenue increase by 14.4 per cent (last 12 months year-on-year) in constant currency and we gained significant market share fuelled by transformational deal bookings in excess of  $1 billion," HCL Technologies President & CEO Anant Gupta said.

These engagements were primarily driven from industries like consumer services, manufacturing and public services and the European region, he added. The company has announced a dividend of Rs 4 per equity share.

During the quarter, HCL Technologies added 11,041 people (gross) and 3,944 (net) employees, taking the total headcount to 1,04,184 as on March 31, 2015.

HCL has signed 14 transformational engagements during this quarter adding up to more than $1 billion of total contract value, led by consumer services, manufacturing and public services verticals.

The company's cash and cash equivalents stood at Rs 838 crore at the end of March 31, 2015.

"The operating margin metrics and enhanced working capital requirements have impacted our cash flows and are an outcome of our focused investment agenda for enhancing capability build up and delivery dynamics of large engagements," HCL Technologies CFO Anil Chanana said.