Despite the fears of a slowdown in developed economies like the US, Indian IT services provider HCL Technologies reported a 3.9 per cent increase in its net income at Rs 342.5 crore for the third quarter ended March 31, 2008, compared with Rs 331.8 crore for the corresponding quarter in the previous year. Revenues in the quarter stood at Rs 1,944.8 crore (Rs 1,577 crore), up 23.3 per cent. | |
| On a sequential basis, the company recorded a 2.9 per cent growth in net income from Rs 332.9 crore. It reported a 7.1 per cent q-o-q growth in revenues from Rs 1,816.6 crore in the trailing quarter. |
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| "The US has given more than what we expected. We are finding more traction in the country now with the US looking for better offshoring deals," said Vineet Nayar, CEO, HCL Technologies. |
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| HCL had earlier predicted a decline in the share of the US in its geographic mix. The revenue share from the US for the quarter under review stood at 55.9 per cent compared with 54.3 per cent in the corresponding quarter of the previous year. |
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| "Despite a slowdown, the US has given us good business. Going forward, we can declare our geographic strategy after assessing this quarter," added Nayar. |
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| "Realisations have improved 7-8 per cent. Utilisations have improved. We're also selling higher value services," said Chief Financial Officer Anil Chanana. |
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| HCL added 32 new clients in the third quarter, and signed 11 deals worth $540 million (around Rs 2,160 crore). Pricing has been stable or slightly higher for the deals announced so far, said Nayar. |
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| Meanwhile, the outsourcing arm (HCL BPO) of the company raked in revenues of Rs 226.5 crore, up 4.6 per cent, compared with Rs 216.4 crore in the corresponding quarter of the previous financial year. On a sequential basis, it witnessed a 3.7 per cent increase in revenues from Rs 218.4 crore in the trailing quarter. |
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| N Ranjit, president and CEO, HCL BPO, said, "This was a quarter of consolidation for the BPO division. We managed to sustain our profitability in spite of various pressures on margins. Attrition was one of the lowest during this quarter with a net addition of 1,374 employees during the quarter." |
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| During the quarter, the company added 1,848 employees to its total headcount. |
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