Key takeaways from HCL Tech's conference call

Published on Tue, Oct 17, 2006 at 10:02 |  Source : Moneycontrol.com

Updated at Tue, Oct 17, 2006 at 10:21  

31348 Investors following HCL Tech. Share this News with them.
0
0
Share on Tumblr

ALSO READ

HCL Technologies has announced its first quarter results. The company's net profit was up at Rs 250 crore (Rs 2.5 billion) from Rs 233 crore (Rs 2.33 billion) quarter-on-quarter, QoQ (US GAAP).

Key takeaway's from HCL Tech's brokerage conference call:

- 14% revenues came from new clients

- Acquired 24 clients; Top 20 clients are growing at faster rate than company

- US & Europe share is growing at expense of Asia, augurs well for margins

- Enterprise applications has grown 22% QoQ; Infrastructure management grew at 17% QoQ; Engineering services grew at 11%QoQ

- Teradyne deal was very competitive deal to win

- Bagged 2 large deals in FY07

- In Q4 change in accounting policy from hedge accounting to mark to market led to hit on forex front.

- Have not seen any pressure on billing rates. New deals coming at higher rates. Renegotiations in some cases have seen improvement in billing rates

- Salary hikes of 17% with effect from July 1; Salary hike due from Oct 1  for managers (about 15% of employee base) expect the quantum jump to be similar.

- Stabilised on infrastructure margins, don't expect significant improvement in margins for infrastructure in coming quarters

- 2/3 of BPO revenues from India operations, has higher margins, looking at increase in share of India operations

- Billing rates have improved by 8% in last 4 quarters, not giving optimistic outlook for billing rates

- LPO deal won in BPO, order of few million dollars per year

- Pharma vertical growing at 50% YoY

- Capex in Q1 at $ 21.8mn, targeting $ 100mn capex in FY07

- Multiple service offering is unique to HCL Tech. Trying to learn ropes of cross selling services

- Teradyne is existing customer for IT services; New deal was won through RFP in competition with Top 5

- SG&A level is likely to stabilise at current levels

- There is room for improvement in utilisation.

- Media & Publishing, Pharma and retail verticals expected to grow at higher rate

- Senior level changes in BFSI vertical to get larger share of large deals in BFSI space

  

Trending News

Business News

Sony to roll-out ICS update next week, Xperia PLAY gets the boot
Why are states so reluctant to cut petrol taxes? "Why are states so reluctant to cut petrol taxes?"

Andhra on alert as Jagan Reddy faces CBI court

Gujarat NRE Coke Q4 Net Loss At `45.5 Cr Vs Profit Of `51.6 Cr (YoY)

The latest earning numbers FIRST on CNBC-TV18
Videos

May 28 2012, 10:38

Nifty may drift to 4800-4600; time to accumulate: Sampriti

- in MARKET OUTLOOK

May 28 2012, 10:38

Buy Bajaj Auto, Hero MotoCorp on dips: Mehraboon Irani

- in MARKET OUTLOOK

Interviews

May 27 2012, 11:52 | Source: CNBC-TV18

Expect to maintain EBIDTA margin ahead: Wockhardt  

May 27 2012, 11:00 | Source: CNBC-TV18

e-commerce market in India: What's in store?  

Subscribe to

Moneycontrol Newsletters

Moneycontrol.com offers you a choice of various sectoral and other newsletters for FREE!