HCL Technologies gains after decent Q2 numbers

HCL Technologies rose 1.95% to Rs 971.30 at 9:24 IST on BSE after consolidated net income rose 5.7% to Rs 2540 crore on 7.1% increase in revenue to Rs 14861 crore in Q2 September 2018 over Q1 June 2018.

The result was announced after trading hours yesterday, 23 October 2018.

Meanwhile, the S&P BSE Sensex was up 323.83 points, or 0.96% to 34,171.06.

On the BSE, 76,000 shares were traded in the counter so far compared with average daily volumes of 44,000 shares in the past two weeks. The stock had hit a high of Rs 982.45 and a low of Rs 961.25 so far during the day. The stock hit a 52-week high of Rs 1,124.50 on 25 September 2018. The stock hit a 52-week low of Rs 825.10 on 4 December 2017.

On a consolidated basis, HCL Technologies' earnings before interest & tax (EBIT) rose 8.7% to Rs 2,966 crore in Q2 September 2018 over Q1 June 2018.

The company sees FY2019 revenues growth between 9.5% to 11.5% in constant currency. FY2019 operating margin (EBIT) is expected in range from 19.5% to 20.5%.

C.Vijayakumar, President & CEO, HCL Technologies said that the company continues to deliver strong and consistent QoQ revenue and margin growth performance. This quarter the company posted 3% revenue growth in constant currency fueled by global infrastructure services, engineering and R&D and Mode 2 next-gen services. Additionally, the company's Mode 3 revenue continues to accelerate and achieved the billion dollar annual run-rate milestone. The company remains confident of retaining this growth trajectory going forward.

Prateek Aggarwal, CFO, HCL Technologies said that the company delivered a robust performance of 10.5% YoY revenue growth in constant currency and EBIT margin at 19.9%, near the mid-point of its guided range. Net Profit crossed a milestone of Rs 10,000 crore on run-rate basis. At Rs 2,540 crore for the quarter, the net profit was up 5.7% QoQ and 16.1% YoY. Further, the firm successfully concluded the buyback programme of Rs 4,000 crore on Oct 11th and have posted robust Return on Equity at 25.8% on LTM basis.

The board of directors has appointed Roshni Nadar Malhotra as the vice chairman of the board of directors of the company with effect from 22 October 2018. She continues to be the non-executive director of the company.

HCL Technologies (HCL) is a leading global technology company that helps global enterprises re-imagine and transform their businesses through digital technology transformation. HCL operates out of 43 countries.

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