HCL Tech Q2 net profit up 6.9% to Rs 2,711 cr, announces bonus shares

IT major HCL Technologies on Wednesday posted a 6.9 per cent rise in its consolidated net profit to Rs 2,711 crore for the September 2019 quarter, and raised its revenue growth forecast to 17 per cent for 2019-20.

The company, which had registered a net profit of Rs 2,534 crore in the year-ago period as per the Indian Accounting Standards (IndAS), has also announced a bonus share offer.

Its revenue from operations grew 18 per cent to Rs 17,527 crore in the quarter under review, from Rs 14,860 crore in the year-ago period.

The company has raised its revenue growth outlook to 15-17 per cent for 2019-20 from its previous forecast of 14-16 per cent topline growth in constant currency terms.

HCL Technologies' board has declared a dividend of Rs 2 per share.

It has also announced a bonus share offer under which one bonus share will be given for every share held. The proposal is subject to approval of shareholders and regulatory nods.

"HCLites have delivered yet another outstanding quarter with a 20.5 per cent year-on-year growth, translating to a more than 14 per cent industry leading organic growth. Our sharp focus on pricing and cost levers over the last 6 months have helped deliver a solid EBIT (earnings before interest and tax) of 20 per cent," said C Vijayakumar, president and chief executive officer, HCL Technologies.

He added that the company is excited about the progress it has made in its newly formed HCL Software business and expressed confidence that this momentum - combined with its diversified portfolio of services and software - will deliver value to clients, our shareholders and employees.

In dollar terms, the net profit grew 5.5 per cent to USD 376.2 million for the September 2019 quarter, while revenue surged by 18.4 per cent to USD 2.48 billion as compared to the year-ago period, as per the US Generally Accepted Accounting Principles (GAAP).

The company added 13,430 people (gross) and 3,223 staff (net) during the quarter to take its total head count to 1,47,123 at the end of the September 2019 quarter. Attrition on last 12-month basis stood at 16.9 per cent.

The results were announced after trading hours.

Shares of the company on Wednesday closed at Rs 1,095.65 apiece, up 2.93 per cent from its previous close on the BSE.