HCL Tech beats street; Q3 net jumps 73% YoY to Rs 1,040cr
Software services exporter HCL Technologies said third quarter net profit soared a much better-than-expected 73 percent year-on-year (8 percent quarter-on-quarter) to Rs 1,040 crore, helped by new deal wins, even as the overall environment remained challenging and uncertain.
April 17, 2013 / 20:02 IST
Moneycontrol Bureau
Software services exporter HCL Technologies said third quarter net profit soared a much better-than-expected 73 percent year-on-year (8 percent quarter-on-quarter) to Rs 1,040 crore, helped by new deal wins, even as the overall environment remained challenging and uncertain.HCL Tech shares opened up 5 percent in morning trade on NSE at Rs 800.60.Its revenue was up 23 percent from a year ago (2 percent sequentially) to Rs 6,425 crore in Jan-March.EBIT (earnings before interest and taxes) rose 56 percent (3 percent QoQ) to Rs 1,276 crore, while Q3 EBIT margin was at 19.9 percent, up slightly from 19.83 percent in Oct-Dec.Analysts on average had expected HCL Tech to report a net profit of Rs 931 crore on sales of Rs 6,413 crore. EBIT was seen at Rs 1,242 crore.In US Dollar terms, the company's revenue was up 14 percent YoY (3 percent QoQ) to USD 1,191 million. In constant currency, growth was up 3.8 percent sequentially."Amidst a challenging and uncertain business environment, HCL continues on its growth trajectory fuelled by its Alternative Outsourcing approach led by two unique value propositions of Alternative ASM and Enterprise Function as a Service," said Amit Gupta, president & CEO.Among key geographies, Europe sales grew 18 percent YoY and Americas 13 percent.Growth was broad based, led by healthcare at 56 percent, retail & CPG at 19 percent, media publishing & entertainment at 15 percent and financial services at 11 percent, HCL Tech said.HCL Tech's performance, which was ahead of street expectations on the profit, revenue as well as EBIT front, would have surely allayed any industry growth concerns fuelled by India's second largest IT company Infosys, which last week missed fourth quarter revenue expectations and guided for FY14 revenue growth, significantly lower than that estimated by NASSCOM.HCL Tech added 52 new clients in the third quarter and had 516 active clients as of March 31. Utilization level including trainees was at 72 percent at offshore locations and 94 percent onsite. HCL Tech net added 419 employees last quarter and had a attrition rate of 15 percent in IT services. It had a total of 82,464 employees as of March 31.The company had cash and cash equivalents of near USD 152 million at the end of last quarter.Meanwhile, HCL Tech has appointed Keki Mistry, vice chairman and CEO of HDFC, as an independent director on the board. It now has 11 directors, including 9 independent directors.Nachiket Kelkar
nachiket.kelkar@network18online.com
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