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HCL Technologies in focus after declaring Q2 results

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Last Updated : Jan 16 2014 | 11:57 PM IST

HCL Technologies reported 5.7% rise in consolidated net income to Rs 1496 crore on 2.8% rise in revenues to Rs 8184 crore in Q2 December 2013 over Q1 September 2013. The figures are as per USGAAP. The company announced Q2 result before market hours.

As a company HCL has always differentiated itself on two key pillars - corporate excellence and governance, and trust through transparency and flexibility. Our sustained efforts in these areas continue to be recognized. said Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies

HCL continues its profitable growth trajectory with yet another stellar quarter of 4% QoQ revenues growth and 39.1% YoY net income growth. The company also crossed many milestones during the quarter, with our CY13 revenues crossing the $5bn landmark. In addition Infrastructure Services, Europe geography and Manufacturing vertical each crossed $1.5bn in revenues. said Anant Gupta, President & CEO, HCL Technologies.

This quarter we also made significant progress in the execution of our Digital System Integration Services strategy by signing new engagements and establishing dedicated Centers of Excellence to further strengthen our thought leadership and thrust on Gen 2 Outsourcing, he added.

"We continue to deliver superior performance. The operating efficiencies, the scale of business in our Run-the-Business offering and the optimization of G&A spend helped in pushing the net income margin to another high of 18.3% this quarter. The asset light model reflected by our Fixed asset turnover at 10x of revenues, and efficient working capital management, continued to keep the return on equity at a historic high of 35% and operating cash flows in excess of 100% of net income", said Anil Chanana, CFO, HCL Technologies.

IT services provider HCL Technologies and CSC, a global leader in next-generation IT services and solutions, have formed a strategic partnership to address the substantial market opportunity created by the need for enterprise clients to modernize their applications and transition to the cloud.

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HCL and CSC will create a world-class application modernization delivery network to enable enterprises to shift from legacy technologies to a cloud-enabled platform. The first delivery centers will be launched in Bangalore and Chennai. These delivery centers will lower the risks and costs for clients transitioning to the cloud, HCL Technologies said in a statement.

The joint application modernization offering will be enhanced with vertical specific initiatives starting with Banking & Financial services through the creation of a banking center of excellence. The partnership will be standardizing the delivery of modernized applications and enable them to be brokered onto any cloud environment, using platforms such as CSC's ServiceMesh, the company said.

According to Gartner's 2014 Market Forecast for IT Services the addressable market for applications services is $210 billion in 2014. The strategic partnership addresses what we believe to be one of the fastest growing segments of the applications services market.

"We are pleased to partner with CSC. The company's strong technology portfolio and client base coupled with HCL's robust system integration capabilities will be a formidable combination in the application modernization market," said Anant Gupta, President and Chief Executive Officer of HCL Technologies. "Application modernization forms the first phase of HCL's Digital System Integration strategy. Enterprises today view digitalization as a route to business model transformation. Organizations have not been able to accrue the potential benefits from digitalization, as they are shackled by legacy technologies."

"Our strategic partnership with HCL is a new and innovative approach to delivering nextgeneration IT services which enable enterprises to achieve greater operational agility and significant reductions to operating costs," said Mike Lawrie, CSC's President and Chief Executive Officer. "It is a recognition that IT service providers and delivery models must evolve from traditional tools and processes to more rapid application innovation, enabling businesses to compete in an ever-changing world."

CSC's next-gen technology solutions coupled with the technology consulting, systems integration and global delivery capabilities of HCL will offer a new value proposition in the market. This value proposition will create a roadmap for bringing legacy products into next gen solutions and execution excellence leading to an optimized business case for application modernization for customers.

According to the terms of the agreement, both companies intend to share equally all cloud application modernization revenue and direct costs. With a new governance board providing oversight, the partners will share dedicated employees and technologies, as well as production and development work.

As part of the partnership, HCL will white label CSC's BizCoud, industry leading, highly secure and highly flexible private cloud offering for the enterprise. HCL and CSC will benefit from the increased scale of this offering, expanded coverage in new markets and incremental revenue opportunities, the company said.

TCS, Axis Bank, Bajaj Auto, South Indian Bank, MindTree, LIC Housing Finance, Infotech Enterprises, Bajaj Holdings, Gruh Finance, DB Corp and Rallis India among others will declare their December 2013 quarterly results today, 16 January 2014.

Cairn India said its proposed buyback offer will commence on 23 January 2014 and close on 22 July 2014. The buyback would be done from the open market through the Stock Exchanges, at a price not exceeding Rs 335 per share, up to an aggregate amount not exceeding Rs 5725 crore.

Sasken Communication Technologies has scheduled a board meeting on 20 January 2014, to consider a proposal for payment of a special dividend. Sasken Communication Technologies has fixed 25 January 2014 as the record date for the purpose of payment of special dividend, if any.

DCB Bank's net profit rose 35.2% to Rs 36.37 crore on 25.3% increase in total income to Rs 323.65 crore in Q3 December 2013 over Q3 December 2012.

CASA ratio as on 31 December 2013 was at 24.80% as against 28.87% as on 31 December 2012.

Retail Deposits (Retail CASA and Retail Term Deposits) continued to provide a stable resource base to the bank. Retail deposits were at 77% of Total Deposits as on 31 December 2013.

Net advances grew to Rs 7361 crore as on 31 December 2013 from Rs 5964 crore as on 31 December 2012 a growth rate of 23%.

DCB Bank's ratio of net non-performing assets to net advances stood at 0.77% as on 31 December 2013, compared with 0.86% as on 30 September 2013 and 0.73% as on 31 December 2012.

The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 2.77% as on 31 December 2013, compared with 3.43% as on 30 September 2013 and 3.80% as on 31 December 2012.

DCB Bank's provisions and contingencies surged 100% to Rs 10 crore in Q3 December 2013 over Q3 December 2012. Provision coverage ratio as on 31 December 2013 works out to 84.25%.

The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 12.86% as on 31 December 2013, compared with 13.84% as on 30 September 2013.

Agro Tech Foods' net profit rose 0.2% to Rs 13.08 crore on 10.4% fall in net sales to Rs 197.06 crore in Q3 December 2013 over Q3 December 2012.

MOIL has scheduled a board meeting on 20 January 2014, to consider interim dividend for the financial year ending on 31 March 2014. The company has set 31 January 2014 as the record date for the purpose of entitlement of interim dividend, if declared, by the board.

Ramky Infrastructure clarified to the stock exchanges that Sequel to achievement of Provisional Completion Certificate for NAM Expressway, the company has been receiving offers from various investors for possible stake sale/securitization for the road projects. These matters are subject to the approval of the board of directors. However the discussions are at preliminary stage. The company said it will keep the exchange informed about the developments or near proximity to closing of any sale transaction.

Ramky Infrastructure issued the clarification after a media report suggested that the company is in talk to sell stake in 3 projects which will fetch around Rs 900 crore.

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First Published: Jan 16 2014 | 8:45 AM IST

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