| In the same period, its revenues stood at Rs 1,709.2 crore, a 23.9 per cent increase from Rs 1,379.5 crore recorded in the corresponding quarter of the previous year. |
| HCL's shares closed 3.34 per cent lower at Rs 303 on the Bombay Stock Exchange today. |
| On a sequential (compared to the previous quarter) basis, the company's revenue jumped six per cent. However, net income saw a 36.6 per cent sequential drop this quarter as the company had registered substantial forex gains (Rs 250.40 crore) in the previous quarter that was reflected in its net income of Rs 486.7 crore. Forex gains in this quarter amounted to Rs 14.5 crore due to a change in accounting practices. |
| "HCL has held on to its margin on a year-on-year basis, despite a 12-13 per cent appreciation in the rupee and this demonstrates the growing robustness of its business model," said HCL CEO Vineet Nayar. |
| The company managed to reduce the impact of the rising rupee (besides hedging of $1.6 billion) by reducing its dependence on the US "� from 60 per cent to 55 per cent "� this quarter. |
| Other geographies such as Australia-New Zealand and Europe continue to be the focus area for the company, going forward. The annual wage hike affected the margins by 250 basis points. |
| Continuing the trend of the last two quarters, the fastest growth among verticals was recorded in life sciences, aerospace and automotive and financial services. |
| "HCL's success in posting a 43 per cent YoY revenue growth and its ability in holding margins on a YoY basis despite the appreciating rupee demonstrates the growing robustness of its business model and its ability to respond to environmental challenges from time to time. Our Employee First focus has resulted in this being the third consecutive quarter to show declining attrition," said Nayar. |
| HCL BPO, meanwhile, sustained a profitable growth during this quarter with a 43.6 per cent YoY growth of revenue and 94.3 per cent YoY increase in income from operations. |
| "The people-centric processes institutionalised by People CMM Level 3 certification have resulted in the lowest attrition during this quarter in the last three years. We have been able to increase our margins despite difficult market conditions," said Ranjit Narasimhan, president & CEO, HCL Technologies-BPO Services. |
| The company reported a six per cent rise in its per person realisation. The headcount has also increased by 25 per cent with the addition of 3,625 people, taking the employee strength to 45,642. |
| "In a way, the appreciation of the rupee has made the industry focus more on increasing productivity, and thus the dependence on the number of people being hired is declining," said Nayar. |
| The company's attrition figure stood at 15.9 per cent, lower than the previous quarter's figure of 17.3 per cent, but much higher than last fiscal's figure of 13.1 per cent during the same period. |
| HCL continues to focus on large transformational deals that began in 2005. The company signed an integrated services $250 million plus deal, making it the third over $200 million deal within a span of 24 months. |
| HCL also signed a multi-service, multi-year, multi-million dollar deal this quarter with Hercules Inc, a leading manufacturer and marketer of specialty chemicals. |
| Vineet Nayar in driver's seat |
| Shiv Nadar today donned the role of chief strategy officer and chairman of HCL Technologies after relinquishing the role of CEO of the company. Now President Vineet Nayar has taken up the additional role of CEO. |
| Two decades after he started his career with HCL, Nayar remains one its key driving forces. |
| Since becoming president in April 2005, he has instituted innovative programmes which prompted Fortune Magazine to label his leadership style as The World's Most Modern Management. |
| Before assuming this role, Nayar was CEO of HCL's infrastructure business since 1993. |
Explore Business Standard