HCL Tech Q2 net profit grows 16.7 per cent to Rs 2,014 crore

HCL's cash and cash equivalents stood at Rs 1,242.8 crore at the end of September 30, 2016

IT services firm HCL Technologies on Friday reported a 16.7 per cent increase in net profit at Rs 2,014 crore for the quarter ended September 2016.

The Noida-based firm had posted a net profit of Rs 1,726 crore in the corresponding quarter of the last financial year, HCL Technologies said in a statement.

Its revenues for the reported quarter were up 14.1 per cent to Rs 11,519 crore, from Rs 10,097 crore in the year-ago period, according to US GAAP accounting norms.

However, on a sequential basis, the company's net profit was lower by 1.6 per cent from Rs 2,047 crore in April-June 2016 while revenue grew 1.6 per cent from Rs 11,336 crore.

The company maintained its revenue growth guidance for 2016-17 at 12-14 per cent on constant currency basis.

In constant currency terms, HCL Tech's revenues were up 12.8 per cent year-on-year.

In dollar terms, the company's net profit grew 14.2 per cent to $301.2 million while revenues rose 11.5 per cent to $1.72 billion compared with the year-ago period.

"HCL continues to be the partner of choice for the 21 Century Enterprise through our differentiated strategy encompassing core services, integrated next-generation offerings and platforms, in line with our Mode 1-2-3 growth strategy," HCL Technologies President and CEO C Vijayakumar said.

This has helped deliver a strong growth of 2.8 per cent quarter-on-quarter and 12.8 per cent on-year this quarter in constant currency on the back of strong first quarter (of 2016-17) performance in constant currency, he added.

The company has announced a dividend of Rs 6 per share.

During the quarter, HCL Technologies added 9,083 people (gross), taking the total headcount to 1,09,795 as on September 30, 2016. Attrition in IT services (last 12-month basis) in the reported quarter stood at 18.6 per cent.

HCL signed 12 transformational deals this quarter, across service lines and industry verticals.

The company's cash and cash equivalents stood at Rs 1,242.8 crore at the end of September 30, 2016.