HCL overtakes Wipro to become the third largest Indian IT services firm

HCL Tech Q1 profit up 10% to Rs 24.31 bn, revenue grows 14% to Rs 138 bn

IT firm HCL Technologies on Friday reported a 10 per cent increase in consolidated net profit at Rs 24.31 billion for the first quarter ended June 30, 2018.

The company had posted a net profit of Rs 22.1 billion in the year-ago period (as per Indian Accounting Standards), HCL Technologies said in a BSE filing.

Its consolidated revenues from operations grew 14.2 per cent to Rs 138.78 billion in April-June 2018 as against Rs 121.49 billion in the same quarter of 2017-18.

In dollar terms, the company's net profit increased 5.7 per cent to $356 million in the reported quarter, while revenues grew 9 per cent to $2.05 billion.

HCL Technologies has overtaken Wipro -- the third largest Indian IT services firm -- in terms of dollar topline. Wipro's IT services revenues stood at $2.02 billion in the June 2018 quarter.

HCL Technologies expects its FY19 revenues to grow between 9.5 per cent to 11.5 per cent in constant currency.

The company has also announced a Rs 40 billion buyback programme for FY19 at a price of Rs 1,100 per equity share.
 

"We achieved highest ever bookings in this quarter led by our next-gen Infrastructure services as well as Mode 2 offerings. Our combined Mode 2 and 3 offerings contributed 26.6 per cent of our revenues and it grew 9.6 per cent quarter-on-quarter," HCL Technologies President and CEO C Vijayakumar said.

The company will continue to invest in its next-generation portfolio to help enterprises build their digital future, he added.

During the quarter, the company signed 27 transformational deals during the quarter, led by strong momentum in telecom, financial services, retail - CPG and energy and utilities verticals.

It saw broad-based growth driven by Technology and Services (36 per cent), Lifesciences and Healthcare (10.2 per cent), Financial Services (9 per cent) and Retail and CPG (7 per cent) on LTM (last twelve months) constant currency basis.

Total headcount stood at 124,121 at the end of June 2018. The attrition for IT services on LTM basis stood at 16.3 per cent. The company has announced a dividend of Rs 2 per share.