HCL Tech Q2 net up 13% at Rs 91 crore

The Shiv Nadar-promoted HCL Technologies has reported a 13 per cent increase in net profit at Rs 91.05 crore for the second quarter ended December 31, 2003, against Rs 80.50 crore in the same period last year.

Gross revenues grew 33 per cent to Rs 622.32 crore (Rs 467.93 crore). If the company's earnings from divesting its stake in HCL Perot Systems is taken into consideration, the net income has grown 336 per cent to Rs 351.34 crore.

The company had sold its stake for Rs 480 crore. Nadar said: "I am delighted to report a quarter that has been one of the most satisfying in recent times, coming as it does on the back of a significant turnaround in the business. It presages the onset of a clear trend line of growth that will enable us to achieve our aim of accelerated top line growth, improved operating margins and a return to predictability."

The company's customer base increased to 438, with 37 new customers added during the quarter. During the quarter HCL Technologies software services business grew 10 per cent sequentially driven by enhanced capacity utilisation and tighter cost control measures.

The business process outsourcing business (BPO) recorded a 13 per cent sequential growth in revenues. The company has also signed a BPO contract with a leading re-mortgage service provider for back office services to be catered to from Chennai.

The company's government business recorded a sequential revenue growth of 9 per cent. "Efforts to leverage opportunities for enhanced growth in revenues and improved profitability in forthcoming quarters for this business division," Nadar said.

In the area of human resource, HCL Technologies added 1,748 employees during the quarter. The net employee addition stood at 1,062 during the quarter, of which 575 were added in the software services business.