HCL net down 4.3% quarterly, up 3.8% yearly

Software major HCL Technologies on Wednesday reported a Rs 2,227 crore consolidated net profit for the fourth quarter of fiscal 2017-18, posting a 4.3 per cent annual decline from Rs 2,325 crore in the same period year ago (2016-17) but up 1.5 per cent sequentially from Rs 2,194 crore quarter ago.

Net profit, however, grew 3.8 per cent year-on-year (YoY) to Rs 8,780 crore for the fiscal under review (FY 2018) from Rs 8,457 crore in FY 2017.

In a regulatory filing to the BSE, the Noida-based IT firm said consolidated revenue grew 9.3 per cent YoY to Rs 13,179 crore for the quarter under review (Q4) from Rs 12,053 crore in the like period a year ago and 2.9 per cent sequentially from Rs 12,808 crore a quarter ago.

Revenue for FY 2018 grew 8.2 YoY to Rs 50,570 crore from Rs 46,723 crore in FY 2017.

Under the International Financial Reporting Standard (IFRS), net profit for the quarter slipped 1.7 per cent YoY to $344 million from $350 million a year ago but grew 1.1 per cent sequentially from $340 million a quarter ago.

Net profit, however, grew 7.7 per cent YoY to $1,360 million for the fiscal from $1,262 million a year ago while revenue grew 12.4 per cent YoY to $7,838 million from $6,975 million a year ago.

Revenue for the fiscal (FY 2018) grew 12.2 per cent YoY to $ 7,838 million from $6,975 million in FY 2017.

The company expects its revenue for fiscal 2018-19 to grow 10.5-12.5 per cent in dollar terms over 2017-18 with 19.5-20.5 per cent operating margin.

"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 diverse services," said HCL Chairman Shiv Nadar in a statement.

In view of the rapid evolution and shifts in geo-political, social and business landscapes, Nadar said the company had to be at the forefront of innovation, technology solutions and people readiness.

"We continue to make strategic investments for readiness in face of these imminent shifts. With the commitment to give back to the society, we will build sustainable and scalable models of positive social impact."

The company added 4,108 techies during the fiscal, taking its headcount to 120,081 from 115,973 year ago.

"We remain confident of the new fiscal in light of the increasing relevance of our business offerings coupled with our strategic investments in technologies of the future," said Chief Executive C. Vijayakumar.

The company added 18 new clients in the $5-million band, 7 in $10 million, 2 in $20-million, 6 in $40 million, and 3 in $50 million during the fiscal under review.

The company's board announced 100 per cent dividend of Rs 2 per share of Rs 2 face value.

The company's blue chip scrip, however, lost Rs 50.75 or 4.79 per cent at the end of trading on the BSE to close at Rs 1,001.05 per share as against Tuesday's closing price of Rs 1,051.40 and opening price of Rs 1,058.50.

--IANS

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