HCL net up 6% yearly, down 6.6% quarterly in Q1

Global software major HCL Technologies on Thursday reported a Rs 2,171 crore consolidated net profit for the first quarter (Q1) of fiscal 2017-18, registering 6.1 per cent annual growth from Rs 2,047 crore in the like period year ago but 6.6 per cent lower sequentially from Rs 2,326 crore a quarter ago.

In a regulatory filing on the BSE, the IT major said consolidated revenue from operations was 7.2 per cent up annually to Rs 12,149 crore for the quarter under review (Q1) from Rs 11,337 crore in the same period an year ago but flat (0.8 per cent) sequentially from Rs 12,053 crore quarter ago.

Under the International Financial Reporting Standard (IFRS), net income grew 10.3 per cent annually to $337 million in Q1 from $305 million in the same period an year ago but 3.8 per cent lower sequentially from $350 million quarter ago.

Gross revenue, however, grew 11.4 per cent annually to $1,884 million in Q1 from $1,691 million and 3.7 per cent up sequentially from $1,817 million quarter ago.

"Consolidated revenue for the current fiscal (2017-18) is expected to grow 10.5-12.5 per cent annually in dollar terms under the IFRS, which is based on the average exchange rates in the last fiscal (2016-17)," said the company in a statement later.

Operating margin for the fiscal (FY 2018) is expected to be 19.5-20.5 per cent with the dollar at Rs.65.50.

"We continue to propel on our growth strategy, delivering 2.6 per cent quarterly and 12.2 per cent yearly growth in constant currency for the quarter under review," said HCL Chairman and Chief Strategy Officer Shiv Nadar in the statement here.

Client acquisition was strong with 12 in $5 million billing,8 in $10 million, 6 in $20 million, 3 in $40 million, 5 in $50 million and 1 in $100 million.

"As the societal structures, geo-political landscapes, demographic spread and economic forces undergo a change, we continue on the path as a responsible and responsive leader," reiterated Nadar.

The company extended its IP-partnership agreement with IBM during the quarter, marking its expansion into business solutions in the marketing automation area, which complements its digital and analytics offerings.

"We have invested $140 million in the extended partnership during this quarter," affirmed the statement.

The buyback of 3.5-crore equity shares of Rs.2 face value at Rs 1,000 per share was completed during Q1.

The company's board of directors also declared a dividend of Rs 2 share or 100 percent.

The company's blue chip scrip gained Rs 20.55 per share on the BSE to trade at Rs 912 during the pre-noon session as against Wednesday's closing rate of Rs 891.45 and opening price of Rs 908 and after going up to a high of Rs 926 and low of Rs 902 during the intra-day trading.

"We expanded our margins to 20.1 per cent in Q1 through superior execution in our core business, integration and assimilation of the acquired entities, as well as our IP investments," recalled HCL Chief Executive C. Vijayakumar.

"With 3.7 per cent quarterly revenue growth, we have demonstrated effective margin performance at 20.1 per cent, within the guidance range," added Chief Financial Officer Anil Chanana.

The company added 9,462 employees in Q1 as against 10,605 quarter ago and 10,515 year ago, taking the headcount to 117,781 by June 30 from 115,973 quarter ago and 107,968 in the same period year ago.

Attrition declined to 16. 2 per cent in Q1 from 16.9 per cent quarter ago and 17.8 per cent in the same period an year ago.

--IANS

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