HCL Tech net dips 71%

CORPORATE SCORECARD

India’s fifth-largest IT services provider HCL Technologies’ consolidated net income for the quarter ended June 2008 fell 71 per cent on forex losses of around Rs 300 crore.

The company posted a net income of Rs 141 crore (adjusting for the forex loss) as against Rs 486.7 crore recorded in the comparative previous quarter. Its revenues touched Rs 2,168.8 crore in the quarter under review as against Rs 1,612 crore in year-ago period – a 34.5 per cent year-on-year (YoY) growth and 11.5 per cent quarter-on-quarter (QoQ) growth. HCL Technologies shares closed at Rs 207.30, up 3.13 per cent on the BSE today.

For the year ended June 30, the company reported a consolidated revenue of Rs 7,639.4 crore – a 26.6 per cent YoY growth. Its net income, however, dipped 17 per cent YoY due to a forex loss of Rs 307 crore. The board has declared a dividend of 150 per cent at the rate of Rs 3 on shares of face value of Rs 2 for FY08.

Vineet Nayar, CEO, HCL Technologies, said, “HCL has expanded its operating margins and has grown revenue ahead of manpower growth for the second year in a row. This year manufacturing saw the maximum traction followed by retail.”

Commenting on BPO results, Ranjit Narasimhan, president and CEO, BPO Services, HCL Technologies, said, “In 2007-08, BPO revenues grew 21 per cent ahead of the headcount growth of 18 per cent. This is the second year in a row when we have expanded our margins.”