India-based information technology services firm HCL Technologies posted a robust 51.7% rise in its year-on-year net profit for the fourth quarter of fiscal year 2011. The PAT came in at Rs 510 crore. On a sequential basis the net profit was up 9%.
HCL, which counts Microsoft, IBM, HP and Oracle as partners, said it was seeing a significant churn among vendors. "The deals in pipeline are bigger than ever before with October-December being the biggest quarter in terms of booking orders. With this our working capital cycle too is seen declining consistently," the management pointed out. Read HCL Tech's results here: HCL Tech Q4 beats street, net up 51.7% YoY at Rs 510 crore In an exclusive interview on CNBC-TV18 the panel comprising of vice chairman and chief executive officer Vineet Nayar and chief financial officer Anil Chanana said the technology major got returns on investment in selling, general and administrative expense (SG&A) and infrastructure. Further, the duo said HCL will continue to focus on market share and maintain margin profile. "We target to maintain margins at 14%," they said adding, however, that they don't see scope for improving pricing and they rule out the possibility of any increase there. The management also feels that though macro indicators and the visa situation were major concerns, with very strong industry headwinds, the company will exceed NASSCOM's industry average growth forecast and bridge the valuation gap in the long term. Below is a verbatim transcript of their exclusive interview with CNBC-TV18Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
