The company made the announcement during trading hours today, 17 January 2013.
Meanwhile, the BSE Sensex was up 179.02 points or 0.9% at 19,996.65.
The stock rose on high volumes. On BSE, 7.25 lakh shares were traded in the counter as against average daily volume of 57,384 shares in the past one quarter.
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The stock hit a high of Rs 720.90 so far during the day, which is 52-week high for the counter. The stock hit a low of Rs 690 far during the day. The stock had hit a 52-week low of Rs 410.45 on 20 January 2012.
The stock had outperformed the market over the past one month till 16 January 2013, surging 7.08% compared with the Sensex's 2.59% gain. The scrip had also outperformed the market in past one quarter, jumping 15.4% as against Sensex's 6.67% surge.
The large-cap IT company has equity capital of Rs 138.91 crore. Face value per share is Rs 2.
HCL Technologies said the scope of the agreement with Nokia includes datacenter, network management, end user computing services and cross-functional service management across Nokia's global IT infrastructure operations. As part of this engagement, HCL will be deploying its MTaaS and MyCloud solutions. The associated IT infrastructure transformation program will leverage HCL's 'Enterprise of the Future' (EoF) Framework to provide a new infrastructure operating platform for Nokia, HCL Technologies said in a statement.
Commenting on the outsourcing service agreement with Nokia, Mr. R Srikrishna, Executive Vice President and Head - Global Infrastructure Services, HCL Technologies said, "This new extended engagement is a testimonial of the business impact, delivery excellence, continuous improvement and the trust that we have delivered to Nokia ever since the start of our relationship with them in 2009. Nokia has a very large, diversified and complex IT operations landscape and we are confident that our ability to align IT operations with business processes will enable us to take the end user experience at Nokia to a new level".
HCL Technologies' consolidated net profit as per US accounting standards rose 9.7% to $177 million on 3.6% growth in revenue to $1.154 billion in Q2 December 2012 over Q1 September 2012. The company announced Q2 results before market hours today, 17 January 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 5.5% to $260.6 million in Q2 December 2012 over Q1 September 2012. EBITDA margin edged up to 22.6% in Q2 December 2012 from 22.2% in Q1 September 2012. The company said TCV of deals won aggregate $1 billion.
HCL Tech said revenue rose 3.1% on sequential basis in Q2 December 2012 in constant currency terms. HCL Tech said that the growth was broad based growth across verticals, led by Financial Services at 10.1%, Energy-Utilities-Public Services at 4.7% and Media Publishing & Entertainment at 4.2%. The company said growth was witnessed across key service offerings, led by Infrastructure Services at 10%, Custom Application Services at 1.7% and BPO Services at 0.7%.
HCL Technologies' net profit rose 9% to Rs 964.70 crore on 3% growth in revenue to Rs 6273.80 crore in Q2 December 2012 over Q1 September 2012.
HCL Technologies today, 17 January 2013, announced the elevation of Anant Gupta as the President and CEO of the company. Vineet Nayar will continue as the Vice Chairman and Joint Managing Director of the company till July 2013 and as Vice Chairman thereafter. Nayar's focus will be on relationship with key customers and leadership development, HCL Tech said.
Commenting on the second quarter results, Vineet Nayar, Vice Chairman, HCL Technologies said: "On the back of this exceptional Calendar Year performance, our quarterly results demonstrate increasing momentum. In the second quarter we grew 3.6% QoQ, our highest over the last 5 quarters and 13% year on year. Our EBIT Margin improved 400 bps over the year to reach 19.8%. Our net margin has improved for five straight quarters to reach 15.4%, and net income grew 59% YoY and 9.7% sequentially. All in all, this has been a quarter of great impetus which has placed HCL in a position of advantage for leveraging the changing market dynamics".
Commenting on the second quarter results, Anant Gupta, President & CEO, HCL Technologies said: "Our growth this quarter was driven by Infrastructure and Financial Services, both growing in excess of 10% sequentially. Six large transformational deals have once again given us a billion dollar booking quarter. On the back of this industry-leading performance HCL is now ready to redefine the market with its Alternative Outsourcing (AO) model. The AO approach consists of business-outcome aligned IT services delivered through alternate delivery models like XaaS".
Anil Chanana, Chief Financial Officer, HCL Technologies said: "HCL has continued to demonstrate industry leading growth with superior returns to its shareholders. The annualized return on equity this quarter has been at 35%. The cash generation backed by higher profitability and efficient working capital management continued to be robust. During the 6 months ended 31 December 2012, the operating cash flow to net income has been 95% while the free cash flow to EBITDA has been more than 50%. This quarter HCL completes 10 straight years of quarterly dividend pay-out".
HCL Technologies' board of directors at a meeting held today, 17 January 2013, declared interim dividend of Rs 2 per share for the year ending 30 June 2013.
HCL Technologies is one of the leading global IT services companies. The company offers an integrated portfolio of services, including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. It has a 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.
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