Forex fluctuations to impact next quarter: HCL Tech

39948 Investors following HCL Tech. Share this News with them.

0

Like this story, share it with millions of investors on M3

Forex fluctuations to impact next quarter: HCL Tech

Vineet Nayyar, CEO HCL Technologies said that engineering, enterprise application besides emerging verticals healthcare and retail have contributed significantly to the growth.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » RELATED NEWS Prabhudas Lilladher says HCL Tech to outperform ahead HCL Tech rises 5% on good Q4 results HCL Tech Q4 net profit at Rs 342 cr, beats estimates ALSO READ See latest News about HCL Tech See previous management interviews See what other Experts & Brokerages are saying about HCL Tech

HCL Technologies has announced its fourth quarter results ended 30 June, 2010. The results were better than expected.

Commenting on the results, Vineet Nayyar, CEO of the company warned that negative impact of forex will be seen in next quarter as well.

Its net profit was at Rs 342 crore in Q4FY10 as against Rs 344 crore, as per US GAAP.

Revenue increased to Rs 3,425 crore from Rs 3,076 crore. Earning before interest, depreciation, tax and amortisation (EBIDTA) margins declined to 18.6% versus 19.7%.

He explained that engineering, enterprise application besides emerging verticals healthcare and retail have contributed significantly to the growth.

Divulging details, Nayyar said that most of the growth has come from deals won 18 months ago. The company bagged large deals worth USD 2 billion last year. More than 11% growth has been contributed by the US clients, he added.

Going forward Nayyar is expecting stable realisations and pricing.

Nayar elaborated that receivables have slipped 80 days since June 2010 while Earning before interest, depreciation, tax and amortisation (EBIDTA) to cash conversion ratio at 69%.

According to him, during the period net debt stood at USD 36 million as of June 2010. 

However he said that negative impact of forex will to be seen next quarter as well.

Insurance business services division of HCL Technologies made USD 9 million loss in FY10. He also added that negative news on BPO business will continue for next few more quarters.

Emphasising on lateral hiring, the company has seen a gross hiring of 11,000 people while net hiring was at 6,500 people, Nayyar pointed out. However its margins did not suffer due to later hiring.

Next page: Transcript of HCL Tech management's exclusive interview on CNBC-TV18.