 "HCL Tech Q3 net up 8.55% at Rs 1,624 cr q-o-q")
The IT services exporter beat market expectations with a 59% y-o-y rise in March-quarter profit, helped by increasing demand for outsourcing services. The Noida-based firm had posted a net profit of Rs 1,021 crore in the corresponding quarter of last fiscal (2012-13).
The company follows July-June fiscal.
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Revenues rose 2% to Rs 8,349 crore from Rs 8,184 crore last quarter. It was up 30% on a year-on-year basis.
The EBIT came in at Rs 2,060 crore, with margins at 24.7%.
In dollar terms, the net profit was up 9.4% to $264 mn sequentially. Dollar revenue was at $1,361 mn, up 3% q-oq. On a yearly basis, the company's net profit grew 39.9%, while revenue rose 14.3%.
HCL's results follow stronger-than-expected profits at Tata Consultancy Services and Infosys.
The company said it added 2 clients each in $50 million and $30 million categories during this quarter.
"With an emergence of an increasingly positive macro environment these values will continue to be HCL’s key differentiators and provide an impetus to our future growth”, said Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies.
"We continue on our growth momentum with a strong revenue growth of three per cent quarter-on-quarter along with 10th straight quarter of margin expansion," HCL Technologies President and CEO Anant Gupta said.
IT services providers are gearing up for stronger demand this year as an improving global economy encourages the sector's clients to boost spending on technology.
Exports by the country's IT outsourcing sector are expected to rise 13-15% in the current fiscal year that started this month, according to the National Association of Software and Services Companies, an industry lobby group.
The company announced an interim dividend of Rs 4 per equity share of face value of Rs 2 each.
During the quarter, HCL Technologies added 8,291 people (gross) and 1,858 (net) employees, taking the total headcount to 90,190 as on March 31, 2014.
It signed 12 transformational engagements this quarter and over $1 billion in total contract value, with Digital Systems Integration, ALT ASM and Infrastructure Management Services continuing to drive the deal win momentum.
Financial and manufacturing led the wins in verticals, while the US and Europe in terms of geographies.
Americas market grew 11% year-on-year, Europe (26%) and Rest of the World (4%).
The company's cash and cash equivalents stood at Rs 1,045.5 crore at the end of March 31, 2014.