HCL net dips 7.9 percent in first quarter

Software major HCL Technologies, which follows a July-June financial year, on Monday reported net profit of Rs.1,726 crore for first quarter of fiscal 2015-16, a 7.9 percent decline over the similar period last year and 3.2 percent sequentially.

Revenue for quarter under review, however, grew 15.6 percent over last year and 3.3 percent sequentially to Rs.10,097 crore under the Indian accounting standard.

Under the International Financial Reporting Standard (IFRS), net income also dipped 14.2 percent over the same period last year and 5.4 percent sequentially to $264 million, while revenue was up 7.7 percent over last fiscal and 0.5 percent sequentially to $1,545 million.

"Remarkable shifts are going on the world over, changing the way business is done. Our blueprint is at the forefront of this redefinition to provide enterprises a roadmap to transform their business models to adapt to the digital age," HCL chairman Shiv Nadar said in a statement.

The IT company added one $50-million client, three $30-million clients and two $20-million clients during the quarter.

"We have started the new fiscal on a strong footing with 15 percent revenue growth in constant currency. Our investments in new technologies and platforms are reflected in healthy bookings and deal pipeline," said HCL chief executive Anant Gupta.

The company declared 300 percent dividend of Rs.5 per share of Rs.2 face value for the quarter.

"Focus on investments allowed us to maintain the deal win momentum. Overall metrics continue to look healthy with 31 percent return on equity and 87 percent net income to cash conversion on annualised basis," said chief financial officer Anil Chanana.

The company's scrip closed at Rs.857.15, 15.80 percent higher than Friday's closing rate of Rs.841.35 on the Bombay Stock Exchange.