HCL Tech Q2 consolidated net up 15% q-o-q at Rs 573 cr

Software services provider HCL Tech has posted a 15.4% growth in consolidated net profit at Rs 572.7 crore in the quarter under review compared to Rs 496.7 crore in the previous quarter.

The IT major's revenues are at Rs 5,425 crore in the quarter ended December 31 2011, up 12.8% from Rs 4,651 crore in the year ago period.

The firm's EBITDA margin has improved to 18.5% vs 17.1% q-o-q. The EBITDA figure stands at Rs 972 crore compared to Rs Rs 795 crore in the last quarter.

The company has attributed its better-than-expected performance to 18 deals with total contract value exceeding $1 billion this quarter. These deals were across sectors like BFSI, Healthcare and Aerospace and include AstraZeneca, BD and CEVA.

The company follows July-June fiscal year.

"HCL continues to increase its market share both qualitatively and quantitatively by leveraging its multi-service capability ... This combined with 18 new transformational deal wins bears testimony to the uniqueness of HCL's business model in the current environment," HCL Technologies vice-chairman and CEO Vineet Nayar said at a press conference while announcing the quarterly results.

The board has declared an interim dividend of Rs 2 per equity share of Rs 2 face value .

The company's cash and cash-equivalents stood at Rs 601 crore as on December 31, 2011.

"The sequential margin expansion of 150 bps and EBIT and EPS growth of 42.6 per cent and 29 per cent year-on-year respectively in this quarter is a result of our continued investment in business that has resulted in higher returns for our shareholders," HCL Tech CFO Anil Chanana said.     

Going forward, the company remains watchful of the volatile currency movements and will continue with its layered hedging policy, he added. "As the uncertainty around economic environment continues, the world will demand companies to be deeply conscious of the accompanying social sensitivities."

HCL Tech Chairman and Chief Strategy Officer Shiv Nadar said, "As economies contract and the job environment remains challenged, we at HCL are committed to creating local jobs, contributing to the welfare of local communities and pushing the pedal on enterprise philanthropy in continuing cognizance of our social responsibility,"

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Q&A: Vineet Nayar, HCL Technologies