HCL Tech inches up after expansion in Canada

HCL Technologies rose 0.6% at Rs 563.95 after the IT major announced expansion in Canada with a global delivery center in Moncton, New Brunswick.

HCL Technologies announced after market hours on Tuesday, 24 December 2019, that the Global Delivery Center (GDC) will focus on technology areas in application development, support, testing, and servicing global clients.

HCL will draw on its 10-year track record of success in Canada to assist tech companies as they continue to grow in the digital age. With its first office opening in Toronto in 2009, HCL partnered with one of Canada's largest railway companies. From there, HCL has worked with Fortune 500 and G2000 Canadian customers to develop frameworks, technologies, and processes that will help businesses succeed through phases of growth and transformation.

HCL has partnered with Opportunities New Brunswick (ONB) in the planning and development of this growth.Opportunities New Brunswick provided guidance and resources for the GDC and future employees. Staffing will include a combination of relocating skilled workers and local hiring. The company anticipates the number of employees to grow to 300 over the next three years.

In support of this expansion, HCL is eligible for an investment of up to $6.26 million from Opportunities NB, a Crown corporation that seeks to attract and support opportunities to grow the economy and create jobs. The assistance will be delivered in the form of a payroll rebate, forgivable loan, and non-repayable contributions.

HCL Technologies' consolidated net profit rose 21.57% to Rs 2,711 crore on 6.7% increase in net sales to Rs 17,527 crore in Q2 September 2019 over Q1 June 2019.

HCL Technologies is engaged in providing a range of software development services, business process outsourcing services and information technology (IT) infrastructure services.

Powered by Capital Market - Live News