Buoyed by strong growth in application and infrastructure services, India's fourth largest IT solutions firm HCL Technologies today reported a 53.7 per cent surge in its consolidated net profit to Rs 1,834 crore for the fourth quarter ended June 30, 2014.
The company, which follows a July-June quarter, had posted a net profit of Rs 1,193 crore in the year-ago period.
Consolidated revenues of the Noida-based firm rose 20.7 per cent to Rs 8,424 crore in the April-June quarter as against Rs 6,980 crore in the same period last year.
"The traction in application and infrastructure services has been strong. It was a strong year for us, we crossed the USD 5 billion revenue milestone and have further evolved the key building blocks to deliver next generation propositions to customers," HCL Technologies CEO Anant Gupta told reporters.
He added that backed by the solid performance, HCL Technologies remains confident in its ability to continue delivering industry leading growth.
In US dollar terms, HCL Technologies reported a 44.2 per cent rise in net profit for the June quarter to USD 305.4 million, while revenues rose 14.6 per cent to USD 1.4 billion.
Application services revenue grew 7.9 per cent year-on -year in dollar terms, while that from infrastructure services moved up 25.6 per cent for the June 2014 quarter compared to the same period last year.
"HCL Technologies Q4 FY14 results were above our estimates on all front. We like the company's performance in software vertical. However, ability to maintain its margin post software vertical revenue expansion remains the watchable going-ahead," Research IndiaNivesh Securities Head Daljeet S Kohli said.
For the full year ended June 30, 2014, its net profit moved up 58.3 per cent to Rs 6,369 crore as against Rs 4,023 crore in the previous fiscal. Revenues rose 27.8 per cent to Rs 32,917 crore during the year as compared with Rs 25,758 crore in FY 2012-13.
HCL said it has signed over 50 transformational engagements with more than USD 5-billion Total Contract Value (TCV) during FY 2013-14.
The company's scrip was trading at Rs 1553.60 apiece in late afternoon trade, 2.74 per cent below yesterday's close on the BSE.
"While the broad numbers look healthy and the HCL Tech management looks happy on the outside, the investors are questioning the lopsided growth, i.E heavy reliance on few pillars like infrastructure management services, chosen verticals and geographies," Greyhound Research CEO and Chief Analyst Sanchit Vir Gogia said.