HCL Tech Q4 net up 13% q-o-q at Rs 1,834 crore

Dollar revenue up 3.4% sequentially to $1,407 million, but falls short of estimates

IT major HCL Technologies today reported Q4 net profit of Rs 1,834 crore, up 13% sequentially.

On a year-on-year basis, net profit jumped 53.7%. The company had posted a net profit of Rs 1,193 crore in the year-ago period.

 

Rupee revenue came in at Rs 8,424 crore, up 0.9% q-o-q. Consolidated revenue was up 20.7% y-o-y.

Dollar revenue was up 3.4% sequentially to $1,407 million, but fell short of analyst estimates and was below TCS' 5.5% increase, sending the company's shares down by as much as 2.5%.

"We were expecting it to grow about 4%. In the past HCL has been able to keep at about the same dollar revenue growth as TCS," said Ankita Somani, analyst at brokerage MSFL Research.

 

In dollar terms, it reported a 44.2% rise in net profit for the June quarter to $305.4 million as against $211.7 million in the corresponding period a year earlier. 

The firm follows July-June as the fiscal year.

Commenting on the performance, HCL Technologies CEO Anant Gupta said: “With a year-on-year increase of 28% in revenues and 58% rise in net income, HCL has posted a robust financial year performance which emphatically demonstrates the continued success and relevance of our overall strategy."

In FY14, the company crossed the $5 billion revenue milestone, he added in a statement. 

For the full year ended June 30, 2014, its net profit moved up 58.3% to Rs 6,369 crore as against Rs 4,023 crore in the previous fiscal. Revenues rose 27.8% to Rs 32,917 crore during the year as compared with Rs 25,758 crore in FY 2012-13. 

 

“HCL continues to demonstrate its ability to navigate the dynamic economic environment and grow profitably. We will continue to build on this ability to deliver differentiated value to clients and stakeholders”, said Shiv Nadar, Chairman and Chief Strategy Officer, HCL Technologies.

HCL's cash and cash equivalents, investments and borrowings at the end of June 2014 stood at Rs 1,020.6 crore. Its total headcount was 91,691. 

 

The firm said it added one client in $100-million plus (deal size) category, four clients in the over $50-million and 16 clients in more than $20 million segment. 

 

Americas accounted for 57% of the company's revenues, followed by Europe at 30.5% and Rest of World (RoW) at 12.5%. 

 

The company announced dividend of Rs 12 per share, its 46th consecutive quarter of dividend payout.