HCL Q1 net soars 78% at Rs 885 cr

Growth mainly driven by major multi-million dollar contract wins

India's fourth-largest IT services provider HCL Technologies reported a year-on-year jump of 78% in net profit at Rs 885 crore for the first quarter of FY 13 ended September 30, 2012. The company, which follows a July-June financial year, said its revenues for the quarter were Rs 6,091 crore, a growth of 31% when compared to the same period last year.

During the September quarter the company won many higher contracts which resulted in the surge in net profit. For the July-September period HCL witnessed a volume growth of 4.5% as against the previous quarter.

“A 31% y-o-y growth in revenues and a 78% growth in net income this quarter reiterates the fact that robust revenue growth can be achieved profitably. Increased wins in Fortune 500 accounts have resulted in Americas and Europe geographies growing at 34% and 37% y-o-y respectively,” said Vineet Nayar, Vice-Chairman & CEO, HCL Technologies.

In dollar terms the net income grew 51.2% at $162 million when compared to the same period last year. Meanwhile, the revenues stood at $1,114 million, up 11.1%  as against the same period last year.

The BPO business, which contributes around 4.5% of the overall revenues, witnessed a y-o-y growth of 7.8% and stood at $50.1 million for the quarter ended September 30, 2012.

The company announced a dividend of Rs 2 per share. As on September 30, 2012 the company made a net addition of 946 people taking the total headcount to 85,335 people.

On a geographical basis Americas continued to be the largest revenue contributor with 57% followed by Europe at 27.9%. On a constant currency basis Americas and Europe grew 4% and 2.7% sequentially.

During the quarter HCL has won 12 multi-year, multi-million dollar deals across service lines led by manufacturing, financial services and consumer services verticals.

On BSE the shares of the company was trading at Rs 590.60 per share up 1.09% as against previous day's close..