The software services provider has maintained its guidance for full year constant currency revenue at 10.5-12.5 percent and operating margin (EBIT) at 19.5-20.5 percent.
IT firm HCL Technologies said its profit for October-December quarter increased 0.3 percent sequentially to Rs 2,194 crore and maintained full year constant currency revenue guidance.
Revenue during the quarter increased 3 percent quarter-on-quarter to Rs 12,808 crore and dollar revenue rose 3.1 percent to USD 1,988 million with constant currency growth at 3.3 percent, it added.
The software services provider has maintained its guidance for full year constant currency revenue at 10.5-12.5 percent and operating margin (EBIT) at 19.5-20.5 percent. Constant currency growth in dollar terms also maintained at 12.1-14.1 percent.
"This was a strong quarter in terms of deal signings where we signed twenty transformational deals across services," C Vijayakumar, President & CEO, HCL Technologies said.
Numbers barring operational performance beat analyst expectations. Profit was estimated at Rs 2,135 crore on revenue of Rs 12,788 crore and dollar revenue at USD 1,978 million for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
The growth was driven by almost all segments barring infrastructure and telecom while geography-wise, American business drove growth for the company.
The company said financial services vertical delivered an industry leading growth of 2.8 percent QoQ in constant currency, driven by new logos and Mode 2 services while engineering and R&D services, enabled by GeometricPLM and IP partnerships, delivered 13.6 percent QoQ growth in constant currency.
Application services posted robust growth of 2.6 percent QoQ in constant currency, driven by Mode 1 and Mode 2 services, it added.
Operating income (earnings before interest and tax) grew by 2.4 percent sequentially to Rs 2,510 crore but margin contracted by 10 basis points to 19.6 percent, which slightly missed estimates of Rs 2,519 crore and 19.7 percent, respectively.
HCL Technologies has added 3 clients in USD 40 million band, 4 in USD 30 million and 1 in USD 20 million. It also added 2 clients in USD 5 million category and 16 in USD 1 million band, but lost 1 client in USD 10 million category.
"We have posted healthy return on equity at 27.3 percent during last 12 months," Anil Chanana, CFO said.
Attrition-IT services (last twelve months) declined to 15.2 percent at the end of December 2017, from 15.7 percent at the end of September quarter while blended utilization (including trainees) dropped to 85.8 percent from 86 percent on sequential basis.HCL Tech said the board of directors has declared an interim dividend of Rs 2 per share for the financial year 2017-18. The record date of January 30, 2018 fixed for the payment of the interim dividend and the payment date of interim dividend will be February 5.