HCL Tech net up 43.3% at Rs 572.7 cr

With a 43 per cent rise in net profit during the December quarter, HCL Technologies is upbeat on outsourcing opportunities in the next three months amid the gloomy global economic environment, even though competitors have hinted at tough times ahead.

The company posted a 43.3 per cent jump in net profit to Rs 572.7 crore for the quarter ended December 31, 2011, from Rs 399.7 crore in the same quarter of 2010.

"I have said in the past few quarters that there will be opportunities that will originate not out of growth in the IT budgets, but from the churn which will happen out of existing vendors to new vendors,” HCL Technologies Vice-Chairman and CEO Vineet Nayar told reporters here.

There is a churn in the market, with 30 per cent of the deals coming up for renewal going to new vendors, he added.

MARCHING AHEAD Notwithstanding the gloomy economic environment, software service provider HCL technologies on Tuesday posted a 43% rise in its net profit for the quarter ended December 31. While one of its peer hinted at difficult times ahead, HCL Tech is upbeat on outsourcing opportunities in 2012. The company expects to grab a considerable share of the deals that are coming up for renewal this year. Here is a snapshot of the quarterly numbers
Income statement	Q2FY12	Q2FY11	Growth Y-o-Y	Q1FY12	Growth Q-o-Q
REVENUE	Rs 5,245.2 cr	Rs 3,888.4 cr	34.90%	Rs 4,651.3 cr	12.80%
EBIT MARGIN	15.80%	13.10%	—	14.30%	—
PROFIT	Rs 572.7 cr	Rs 399.7 cr	43.30%	Rs 496.7 cr	15.30%
Source: Financial result drawn under US GAAP

The country's second-largest software exporter Infosys last week lowered its annual revenue growth outlook and warned of lower IT budgets due to the euro zone debt crisis.

HCL Tech's revenues for Q2 FY12 stood at Rs 5,245.2 crore, up 34.9 per cent from Rs 3,888.4 crore in the same quarter of FY11.

The company follows a July-June fiscal year.

Reacting to the results, the company’s scrips closed at Rs 424.75 apiece on the Bombay Stock Exchange on Tuesday, up 4.61 per cent from their previous close.