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HCL Tech Q1 net dips 2.7% to Rs 496 cr

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Press Trust of India Mumbai
Last Updated : Jan 21 2013 | 12:40 AM IST

IT firm HCL Technologies (HCLT) today posted a 2.7 per cent in net profit at Rs 496.7 crore for the first quarter ended September 30, 2011. In the previous quarter it was Rs 510.5 crore.

However, it posted a 50% year-on-year jump for the first quarter ended September 30, 2011. The company's net profit stood at Rs 331.1 crore in the July-September quarter of 2010.

HCL follows a July to June fiscal year.

However, on a sequential basis, the company's net profit dipped by 2.7% during the reporting quarter. Its net profit stood at Rs 510.5 crore in Q4, FY11.

HCLT's revenues stood at Rs 4,651.3 crore during the reporting quarter, up 25.4% from Rs 3,708.1 crore in Q1, FY11.

"We have doubled our quarterly revenues in just three years to record a billion dollar quarter despite the tough economic environment," HCLT Vice-Chairman and CEO Vineet Nayar said.

The board has declared an interim dividend of Rs 4 per equity share of Rs 2 face value, which includes a 'one-time special milestone dividend' of Rs 2 per equity share of the company.

Under the programme, all employees who are on the company's rolls as of October 14, 2011, will receive a minimum amount equivalent to 5 shares and a maximum amount equivalent to 10 shares based on years of tenure at HCL. The amount they will receive will be based on the closing price of the company's shares on the NSE on October 17.

The company has budgeted an amount of Rs 25 crore for this initiative, the statement said.

"This 'Milestone Share Programme' is a small token of appreciation of our employees who are the reasons for all our success," Nayar said. In July-September, 2008, HCLT had registered quarterly revenues of $501 million.

The company's cash and cash-equivalents stood at Rs 469.4 crore as on September 30, 2011.

"While the currency markets continue to be volatile, HCL follows a layered hedging programme to cover its foreign currency exposure," HCLT CFO Anil Chanana said.

During the quarter, the company added 9,311 (gross) and 3,474 (net) employees, taking its total headcount to 80,520 by the end of September 30, 2011.

HCLT signed 12 transformational deals this quarter, including with EMI Group, Norfolk Southern and a leading life sciences organisation.

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First Published: Oct 18 2011 | 10:15 AM IST

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