HCL second quarter net up 58 percent

HCL Technologies Thursday reported net profit of Rs.1,496 crore for second quarter (October-December) of its fiscal, which is from July, registering 58 percent year-on-year (YoY) growth and 5.7 percent sequentially as per the Indian accounting standard.

In a regulatory filing to the stock exchanges, the IT bellwether said its revenue for the quarter under review (Q2) increased 30 percent YoY and 2.8 percent sequentially to Rs.8,184 crore.

Earnings before interest and taxes (EBIT) rose 59 percent YoY and 2.4 percent sequentially to Rs.1,941 crore.

Under International Financial Reporting Standard (IFRS), net income rose 39 percent YoY and seven percent sequentially to $242 million and gross revenue to $1.3 billion, up 15 percent YoY and four percent sequentially.

The EBIT under IFRS rose 39 percent YoY and 3.7 percent sequentially to $313 million.

"As a company, we have always differentiated on two key pillars - corporate excellence and governance, and trust through transparency and flexibility. Our sustained efforts in these areas continue to be recognized," HCL Chairman Shiv Nadar said.

The global software major also crossed the $5-billion revenue mark in calendar year 2013, with infrastructure services, manufacturing and European market accounting for $1.5 billion.

"We also made significant progress in executing our digital system integration services strategy by signing new engagements and establishing dedicated centres of excellence to strengthen our thought leadership during the quarter," company president Anant Gupta said.

According to chief financial officer Anil Chanana, operating efficiencies, scale of business in run-the-business offering and optimisation of General and Administrative spend helped in pushing the net income margin to 18.3 percent in the quarter.

"The asset light model reflected by our fixed asset turnover at 10x of revenues, and efficient working capital management, continued to keep the return on equity at a historic high of 35 percent and operating cash flows in excess of 100 percent of net income", Chanana added.