HCL net up 14 percent in fiscal 2014-15

Software major HCL Technologies on Monday reported Rs.7,254 crore net profit for fiscal 2014-15, registering 14 percent growth year-on-year (YoY), as per the Indian accounting standard.

In a regulatory filing to the Bombay Stock Exchange (BSE), the outsourcing firm said revenue for the fiscal increased 12.6 percent YoY to Rs.37,061 crore.

Under the International Financial Reporting Standard (IFRS), net income grew 12 percent YoY to $1,164 mn and revenue 11 percent YoY to $5,952 million for FY 2015.

For fourth quarter (April-June) of fiscal under review, net profit was, however, down 2.8 percent YoY to Rs.1,783 crore, while revenue was up 16 percent YoY to Rs.9,777 crore under the Indian accounting standard.

Sequentially, net profit was up 5.9 percent and revenue 5.5 percent up from previous (January-March) or third quarter of last fiscal in rupee terms and 3.1 percent (net) and 3.2 percent (gross) respectively under IFRS.

Under IFRS, net income for quarter (Q4) under review was also down 8.8 percent YoY to $279 million while revenue was up 9.3 percent to $1,538 million ($1.5 billion).

The Noida-based company follows a July-June year for its financial results.

"The 21st century enterprise is witnessing both new threats and opportunities in an environment which is dynamic. In many ways, culture is becoming important to navigate these challenging times,a HCL chairman and chief strategy officer Shiv Nadar said in a statement on the occasion.

Revenue from infrastructure was $2 billion, financial services $1.5 billion and engineering and R&D services $1 billion.

"Our philosophy of 'relationship beyond contract' has ensured that employees are able to create value in unexpected ways for clients," Nadar asserted.

Focus on investments in line with changing technology landscape impacted the company's operating margin for fourth quarter (Q4) under review.

"We had a broad-based performance in the fiscal under review (FY 2015), led by a robust revenue growth in double digit and industry growth in the US (14 percent YoY) and Europe (18.7 percent YoY)," chief executive Anant Gupta said in the statement.

Gupta also claimed that the company added 58 clients in the last fiscal, with a combined contract value of $5 billion.

"Our robust performance is reflected in achieving revenue milestones in key verticals like infrastructure, engineering and financial services and customer addition across segments," chief financial officer Anil Chanana said.

The company added one client in $100-million segment, five in $40-million segment, 10 in $10 million, 24 in $5 million and 47 in $1 million.

Though the company hired 9,448 people in fourth quarter, net addition was 1,923, as 7,525 people left, taking the total number of headcount to 106,107 as against 104,184 quarter ago and 91,691 year ago.

"Attrition declined marginally to 16.5 percent in quarter under review from 16.9 percent year ago but fractionally up from16.2 percent quarter ago," the statement added.