HCL Technologies , the fourth largest software services exporter in India, surpassed street expectations on every parameter on Friday. Profit increased 2.3 percent sequentially to Rs 1,915 crore during the quarter. Profit was expected at Rs 1,770 crore on revenue of Rs 8,950 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18. Revenue grew 6.3 percent quarter-on-quarter to Rs 9,283 crore and dollar revenue rose 4 percent to USD 1.49 billion during October-December quarter (as against expected dollar revenue of USD 1.477 billion).
“We have posted yet another strong quarter with constant currency revenue growth of 6.2 percent (the highest in last 16 quarters) Q-o-Q and 16.2 percent Y-o-Y," said Anant Gupta, President & CEO. Constant currency growth in dollar revenue was far better than its peers Infosys (2.6 percent), TCS (2.5 percent) and Wipro (3.7 percent). The company follows July-June as its financial year. "Our continued focus in developing next generation propositions around digitalization, engineering platform
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services and target operating model for enterprise IT have allowed us to stay ahead of the innovation curve and gain significant market share in the Global IT services market," he added.
Earnings before interest and tax (EBIT) during the quarter jumped 5.9 percent to Rs 2,210 crore but margin declined 10 basis points to 23.8 percent on sequential basis. Analysts had estimated EBIT at Rs 2,050 crore and margin 22.9 percent for the quarter. HCL Technologies has maintained its USD 1 billion mark in deal wins for the eighth consecutive quarter. It signed 15 transformational deals in Q2FY15 with total contract value of USD 1 billion. The software services exporter's USD 50 million clients were 16 (against 15 in previous quarter) and USD 40 million clients increased by 2 to 22 in the quarter gone by. “This quarter we crossed the 100,000 employee milestone.
Our Ideapreneurs are creating unique value for our clients by delivering ‘Relationships beyond the contract’ and continue to be our most critical differentiators”, Anant Gupta said. Blended utilisations (including trainees) stood at 82.9 percent during the quarter compared to 82.7 percent in the previous quarter. Attrition at its business services segment increased to 6.7 percent from 5.9 percent while at IT services segment attrition declined to 16.4 percent from 16.6 percent on sequential basis. "We continue to do well in managing our working capital and delivered superior return on equity at 38 percent for Calendar year 2014," said Anil Chanana, CFO, adding (in order to expand the retail base), the board has recommended issuance of bonus shares in the ratio of 1 share for every 1 share held.
The board of directors also announced dividend of Rs 8 per share.
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