HCL Technolgies net profit drops 10% to Rs 22.30 bn for March quarter

Information technology firm HCL Technologies on Wednesday posted a 9.8 per cent decline in consolidated net profit at Rs 22.30 billion for the March quarter compared to the year-ago period. The country's fourth largest software services firm had registered Rs 24.74 billion net profit in the year-ago period, according to Indian Accounting Standards (Ind AS), HCL said.

Total income was up 2.2 per cent to Rs 134.80 billion from Rs 131.83 billion in the corresponding quarter last year, it added. For 2017-18, net profit was up 1.3 per cent to Rs 87.22 billion, while total income grew 6.4 per cent to Rs 517.86 billion from the previous financial year.

HCL expects its revenues to grow in the range of 9.5-11.5 per cent on constant currency basis in 2018-19. “We conclude the fourth quarter and the financial year 2018 with an industry-leading performance backed by broadbased growth across verticals, robust client additions and accelerated revenues from mode 2 and 3 services,” HCL President and Chief Executive Officer C Vijayakumar said. He said the firm remained confident of the new financial year in light of the increasing relevance of the business offerings coupled with strategic investments.

During the quarter, HCL signed 15 transformational deals, led by verticals of financial services, manufacturing, public services, lifesciences and health care. At the end of March, HCL had 120,000 employees with a gross addition of 8,476 people. Its attrition for IT services (on last 12-month basis) was at 15.5 per cent. The board of directors has declared an interim dividend of Rs 2 per equity share.