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HCL Q1 profit up 7.6%; 10.5-12.5% growth forecast lifts stock

HCL had reported profits of Rs 2053 crore on revenue of Rs 11626 crore in the same period last year.

Karan Choudhury  |  New Delhi 

HCL Tech Q1 Results

India's fourth-largest software exporter said first quarter profit rose 7.6  per cent to Rs 2,210 crore and  revenue grew 7.2 per cent to Rs 12,462 as business grew from customers across geographies.

HCL had reported profits of Rs 2053 crore on revenue of Rs 11626  crore in the same period last year.

The Noida-based HCL revenue has forecast that it would grow between 10.5 per cent to 12.5 per cent in the year ahead, the most confident of Indian IT firms  to grow double digit  in a year when Nasscom has predicted single digit

The positive forecast lifted the Stock on the BSE, which rose 4 per cent.  The stock was trading up 3.85 per cent or Rs 34.30 at Rs 925.75  at  9.30 am

The company sees operating margins between 19.5 per cent to 20.5 per cent.

"We continue to propel forward on our Mode 1–2–3 strategy, delivering a revenue of 2.6% QoQ and 12.2% YoY in constant currency terms in Q1’FY18.  This quarter, we also expanded our EBIT margins from 20% to 20.1%, through continued superior execution in our core business, integration and assimilation of the acquired entities, as well as our IP investments” said C.Vijayakumar, President & CEO, Ltd.

“Overall, we are happy with our first quarter FY’18 performance. Accompanied with US$ revenue at 3.7%, we have demonstrated effective margin performance reporting EBIT at 20.1%, within the guidance range. Cash Flow generation continues to be robust with Net Income to Operating Cash Flow conversion at 104% on LTM basis. The  share  buyback  of  '3,500  crores  was  successfully  concluded  during  the  quarter,  which  together  with  the  dividend per share of  Rs 2 this quarter, is demonstrative of our balanced capital allocation focus”, said Anil Chanana, CFO, Ltd.