HCL Technologies rose 0.94% to Rs 1396.60 at 10:59 IST on BSE after the company announced a $400 million strategic engagement with DNB Bank ASA, Norway's largest bank and one of the world's leading maritime shipping banks.
The announcement was made during trading hours today, 7 May 2014.
Meanwhile, the S&P BSE Sensex was down 42.70 points or 0.19% at 22,465.72.
On BSE, so far 12,000 shares were traded in the counter as against average daily volume of 65,428 shares in the past one quarter.
The stock was volatile. The stock rose as much as 1.42% at the day's high of Rs 1403.25 so far during the day. The stock rose 0.32% at the day's low of Rs 1388.10 so far during the day. The stock had hit a record high of Rs 1,588.65 on 28 February 2014. The stock had hit a 52-week low of Rs 716.70 on 17 May 2013.
The stock had underperformed the market over the past one month till 6 May 2014, sliding 0.99% compared with the Sensex's 0.67% rise. The scrip had also underperformed the market in past one quarter, declining 1.81% as against Sensex's 10.82% rise.
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The large-cap company has equity capital of Rs 139.90 crore. Face value per share is Rs 2.
As part of strategic pact, HCL Technologies will manage the IT infrastructure services and application operations for all DNB businesses across Norway and its key international locations.
As part of the deal, HCL will migrate and transform DNB systems and infrastructure from its existing IT partner to create two new data centers in Norway. The key focus will be driving a world-class user experience to the bank's 2.5 million retail banking customers and end-users across all DNB's products, including retail and online banking, cards, insurance, capital markets, payments and finance, HCL Technologies said in a statement.
The agreement will help DNB significantly improve operational stability, reduce cost and implement a strong application operations framework with highest levels of service quality and innovation within the bank, HCL Technologies said. As the prime services provider, HCL will be responsible for managing operations and multiple vendors across the bank's complex technology landscape, the company said in a statement.
Ashish Gupta, Executive Vice President and Head of EMEA, HCL Technologies, ISD said, "We take pride that DNB has chosen HCL as its partner of choice to transform, improve and run its IT operations. Leading global banks are looking for ways to improve their mission-critical IT operations to deliver world-class customer service in an increasingly complex technology, regulatory and cost-conscious environment. HCL will deploy its Enterprise of the Future (EoF) framework to enable DNB to not only transform its IT infrastructure but also mature IT operations. This will ensure that the bank has agility to scale IT to meet business needs in a secure compliant manner using a Digital Fortress construct. The DNB engagement is also a testimony of our growing strength as the provider of choice for the Gen 2.0 outsourcing market with the most complex and transformational engagements successfully delivered for customers in many industries".
Liv Fiksdahl, Group Executive Vice President/COO, DNB Bank ASA said, "DNB has been running a comprehensive market evaluation over the last 18 months to select a partner of choice for running DNB's IT operations to world-class standards as befits a premium bank like DNB. We are happy to have partnered with HCL Technologies on this journey. HCL has demonstrated expertise in undertaking significant transformations for large clients in the financial services industry and with HCL operation's we aim to deliver a first-class user experience to DNB's users".
DNB is Norway's largest financial services group and one of the largest in the Nordic region in terms of market capitalization. The Group offers a full range of financial services, including loans, savings, advisory services, insurance and pension products for retail and corporate customers.
HCL Technologies' consolidated net profit as per US-GAAP rose 8.5% to Rs 1624 crore on 2% growth in revenues to Rs 8349 crore in Q3 March 2014 over Q2 December 2013.
HCL Technologies is a global IT services company. HCL leverages its extensive global offshore infrastructure and network of offices in 31 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare & Life sciences.
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