HCL net up 10.7 per cent in Q1

Software major HCL Technologies on Friday reported Rs 2,403 crore consolidated net profit for the first quarter of 2018-19, posting 10.7 per cent annual growth from Rs 2,171 crore in the same period last year and 7.9 per cent sequentially from Rs 2,227 crore last quarter.

"Consolidated revenue for the quarter (Q1) under review grew 14.2 per cent annually to Rs 13,878 crore from Rs 12,149 crore in the like period year ago and 5.3 per cent up sequentially from Rs 13,179 crore quarter ago," said the Noida-based IT major in a regulatory filing on the BSE.

Under the International Financial Reporting Standard (IFRS) in dollar terms, consolidated net income grew 5.7 per cent annually to $356 million from $337 million in same period year ago and 3.4 per cent sequentially from $344 million quarter ago.

Revenue grew 9 per cent annually to $2,055 million from $1,884 million in like period year ago but remained flat (0.8 per cent) sequentially from $2,035 million last quarter.

Earnings before interest, tax, depreciation and amortisation (Ebitda) or the operating margin grew 11.6 per cent to Rs 2,729 crore for the quarter from Rs 2,444 crore year ago and 5.7 per cent sequentially from Rs 2,583 crore.

"Revenue for the fiscal (FY 2019) is expected to grow 9.5-11.5 per cent in constant currency, which translates into 8.4-10.4 per cent on dollar value of Rs 66/$ as on June 30," said the company in a statement later.

The operating margin (Ebitda) for the fiscal is expected to be 19.5-20.5 per cent with Indian rupee at 66 per US dollar.

"As we expand our global footprint, it is imperative we accelerate, reinvent and reimagine to overcome the challenges of an ever-evolving technology and business landscape. We also remain committed to creating a sustainable business with focus on diversity and inclusion," said HCL Chairman Shiv Nadar in the statement.

The company signed 27 deals during the quarter with momentum in telecom, financial services, retail, consumer package goods and energy & utilities verticals.

"We achieved highest ever bookings in the quarter led by the next-gen Infrastructure services. We are investing in next generation portfolio to help enterprises build their digital future," said Chief Executive C. Vijaykumar.

The company added one new client in $100-million and 7 in $50 million band.

"The quarterly performance has been as per our plan. We have reported healthy growth in revenues. We allocate capital efficiently with equity buyback announcement which is underway. Our pay-out as percentage of net income has been at 54 per cent of net income and 69 per cent of free cash flow," said Chief Financial Officer Anil Chanana.

The board of directors recommended 100 per cent dividend of Rs 2 per share of Rs 2 face value for the investors.

The company also announced to buyback equity shares valued at Rs 4,000 crore at Rs 1,000 per share in this fiscal.

The company hired 12,558 techies during the quarter, taking the total headcount to 124,121 as against 120,081 quarter ago and 117,781 a year ago.

The HCL's blue-chip gained Rs 11.25 per share at the end of Friday's trading on the BSE to close at Rs 963.70 as against Thursday's closing rate of Rs 952.45 and opening price of Rs 961.

--IANS

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