HCL Tech net profit jumps 51.7%

Despite the world economy reeling under bad macroeconomic indicators, the Indian export-driven IT services industry has all the reasons to cheer up.

HCL Technologies, the country’s fourth largest software exporter, on Wednesday reported a robust 51.7 per cent rise in its net profit to Rs 510 crore for the quarter ended June 30, compared with the corresponding quarter last year. The revenues at Rs 4,300 crore grew 27.5 per cent over the year-ago period.

The company saw an all-round growth, including good performances in key geographies, business lines and verticals, and improved operational efficiency. The growth in profit was also aided by a foreign exchange gain of Rs 8.3 crore in the quarter, compared with hedging losses of 134.8 crore in the year-ago period.

On a sequential quarter basis (compared with the trailing quarter), the net profit of the company went up by nine per cent and revenues grew by 3.9 per cent. The fourth quarter volume growth of four per cent, however, was not at par with what HCL had achieved in the last two-three quarters.

The operating margin of the company in the fourth quarter improved to 18.5 per cent from 17.3 per cent in the previous quarter. “HCLT’s results were in line with our estimates. The 120bps improvement in EBIDTA margins was positive. The improving macro scene and sustainability of revenues growth/improving margins, makes us positive on HCLT,” said Dipen Shah, senior VP (private client group research) of Kotak Securities.

In its accounting year June 30, the company’s revenues went up by 27.4 per cent to Rs 6,034 crore, while its net income at Rs 1,709 crore grew by 30.9 per cent, compared to its performance in the previous fiscal. The company added 20 new clients during the quarter and 55 during the financial year.

In terms of growth from geographies, Europe witnessed the strongest rise at 28.9 per cent, primarily driven by the banking and finance industry. The US business saw a growth of 23.5 per cent and rest of the world grew by 69 per cent over the previous fiscal.

HCL Tech to hire 9,000 freshers by year-end

Prompted by a surge in business demand, HCL Technologies has announced to hire 9,000 freshers from campus for the calendar year 2011.

During the quarter that ended June 30, 2011 the company hired 3,000 freshers, which is 40 per cent of the total hiring done during the quarter. The number is almost double of what the company hired in the same quarter last year. HCL Technologies also announced a salary hike of 12-14 per cent for offshore employees.