Moneycontrol Bureau
Software services exporter HCL Technologies beat street expectations on bottomline and operational front but its topline missed estimates. Net profit grew by 2.1 percent sequentially (up 32 percent Y-o-Y) to Rs 1,873 crore in the quarter ended September 2014 led by other income and operational performance. Profit in previous quarter was Rs 1,834 crore.
Profit was expected at Rs 1,742 crore on revenue of Rs 8,805 crore for the quarter while dollar revenue was estimated at USD 1,452.5 million, according to the average of estimates of analysts polled by CNBC-TV18.
Revenue in rupee terms climbed 3.7 percent quarter-on-quarter (up 10 percent year-on-year) to Rs 8,735 crore and dollar revenue rose by 1.85 percent (up 13 percent on yearly basis) to USD 1,433 million from USD 1,406.9 million during the same period.
Its dollar revenue growth was lower compared its peers Infosys (3.2 percent) and TCS (6.4 percent). Even constant currency revenue growth of 3.2 percent was lower than Infosys at 3.9 percent and TCS at 7.7 percent.
The company follows July-June as its financial year.
Other income of the IT services exporter surged 70 percent to Rs 358 crore in July-September quarter from Rs 211 crore in April-June quarter.
Earnings before interest and tax jumped 2.5 percent to Rs 2,088 crore in the quarter ended September 2014 from Rs 2,038 crore in previous quarter while margin dipped 0.3 percent to 23.9 percent from 24.2 percent during the same period, which both were above expectations of Rs 2,065 crore and 23.45 percent, respectively.
"The superior operating performance has been accompanied by efficient working capital management including DSO, high conversion of profits into cash and return on equity at historic high of 36 percent," said Anil Chanana, CFO.
Blended utilisation rate for the quarter was at 82.7 percent, declined compared to 84.5 percent in previous quarter.
Attrition at business services division increased to 5.9 percent from 5.3 percent but attrition in IT services segment declined to 16.6 percent from 16.9 percent during the same period.
HCL Technologies said its USD 100 million plus clients increased to 7 from 6 on quarter-on-quarter basis.
HCL has signed 15 transformational engagements with more than USD 1 billion of total contract value in this quarter.
"Our customer acquisition momentum continues with yet another billion dollar quarter driven by strong growth in global infrastructure services at 16.9 percent Y-o-Y, and engineering and R&D services at 14.1 percent Y-o-Y. We have also added 15 Fortune 500/Global 2000 clients this quarter," said Anant Gupta, CEO.
Americas and Europe business during the quarter grew 5.7 percent and 2.7 percent on sequential basis, respectively while engineering and R&D services growth stood at 8.1 percent, enterprise service integration growth at 5.1 percent and global infra services growth at 5.2 percent in the quarter gone by.
Retail and consumer packaged goods division growth was 15.8 percent in the quarter ended September 2014 while manufacturing growth was 5.3 percent and financial services growth at 3 percent.
Meanwhile, the board of directors of the company today declared an interim dividend of Rs 6 per equity share. The payment date of the said interim dividend will be November 03, 2014.
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