HCL Tech Q1 net beats forecast, up 18.7% at Rs 1,416 cr

Moneycontrol Bureau

HCL Technologies September quarter numbers testified to the improved business environment for the sector, with net profit and operating margins exceeding analyst estimates. Revenues, however, just about met market expectations. 

Consolidated quarterly net profit stood at Rs 1416 crore, up 14 percent sequentially and up 31.2 percent year-on-year. Consolidated revenues grew 14 percent quarter-on-quarter to Rs 7,961 crore.  

According to the average of a CNBC-TV18 poll, net profit was estimated at Rs 1350 crore and revenues at Rs 7,974 crore. 

“Against the backdrop of encouraging macro economic trends, these results cement HCL's position as a company with a strong and differentiated business model”,said Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies in the press release. 

The IT services major’s earnings before interest and taxes, or operating profit, stood at Rs 1895 crore, up 31.1 percent quarter-on-quarter, with margin increasing to 23.8 percent from 20.7 percent in the preceding quarter. 

“Our focus on Generation 2 propositions like Enterprise of the Future in

TM ITO and ALT ASM in Application Services continues to drive the company's quality of revenue,” said Anant Gupta, President and CEO, HCL Technologies. 

The company attributed strong growth in the financial services and manufacturing verticals to the robust performance.

The company booked a forex loss of Rs 236 crore during the quarter, compared with a gain of Rs 29 crore in the June quarter. 

“Infrastructure Services continued to lead with growth at 8.8 percent, followed by Business Services at 1.7 percent, Engineering and R&D Services at 1.5 percent and Application Services at 1.1 percent respectively,” the company said in its release.

Other income rose to Rs 116 crore from Rs 48 crore quarter-on-quarter.