HCL net up 3.6 percent in third quarter

Global software services major HCL Technologies Ltd. has posted Rs.1,683 crore net profit for third quarter (January-March) of fiscal 2014-15, registering 3.6 percent growth year-on-year (YoY).

Sequentially, however, net profit declined 12.2 percent from second quarter (October-December), as per the Indian accounting standard.

Revenue for the quarter under review (Q3) grew 11 percent YoY to Rs.9,267 crore, which is a decline of 0.2 percent sequentially, the Noida-based IT major said in a statement here on Tuesday.

Under the International Financial Reporting Standard (IFRS), net income for the quarter grew 2.3 percent YoY to $270 million and gross income 9.5 percent YoY to $1,491 million.

Sequentially, net income dipped 12 percent while gross income remained flat.

Earnings before interest and tax (EBIT) at Rs.1,977 crore are four percent less YoY and 10.5 percent less quarter-on-quarter (QoQ), as per the Indian accounting standard.

Under IFRS, EBIT at $318 million is a decline of 5.3 percent YoY and 10.5 percent less sequentially.

"We have been at the forefront of changing market dynamics. With enterprise need for digitalization, Internet of Things and next generation ITO, we are well set to redefine the interface between technology and business," HCL chairman Shiv Nadar said on the occasion.

Broad-based growth across geographies, verticals and horizontals enabled the company bag one client each for $50-million and $30-million deals, and four clients for $20-million contract.

"Our new-age propositions will improve the competitiveness of global enterprises," Nadar asserted.

"The quarter saw our revenue increase 14.4 percent in the last 12 months in constant currency, as we gained significant market share, fuelled by transformational deal bookings in excess of $1 billion," HCL chief executive Anant Gupta said in the statement.

With net addition of 3,944 techies during the quarter, the company's total head count increased to 104,184 by March-end.

"We have also made significant investments in expanding our global footprint, opening several new onsite facilities and co-innovation Labs," Gupta added.

HCL chief financial officer Anil Chanana said operating margin metrics and enhanced working capital requirements had impacted cash flows during the quarter in a volatile currency environment.