HCL net income up 58% to Rs 286 cr

BS 200 SCORECARD

HCL Technologies posted a 58 per cent rise in net income to Rs 286 crore for the second quarter ended December 31, 2006 on the back of renewed focus in new market segments, deepening customer relationships and new partnership initiatives.

The company also registered a 39 per cent jump in revenues to Rs 1,465 crore, while its bottom line was up 14.4 per cent sequentially.

"The transformation strategy of the company has delivered results in all key financial and operational metrics for the last several quarters. This not only validates our strategy but reaffirms our customers' and employees' alignment with it," Shiv Nadar, chairman and chief executive officer, said.

The company increased its headcount by 1,865 in the quarter, taking its total employee base to 38,317 people as on December 31, 2006. It also announced 1:1 bonus, during the quarter and interim dividend of 200 per cent. 
 

(Rs crore)	Quarter ended Dec
	2005	2006
Revenues	1054.2	1465.1
Gross profits	397.8	554.3
EBITDA	237.7	324.0
EBIT	188.3	261.7
Net income	181.1	286.2
Gross margin (%)	37.7	37.8

The company added 23 new customers taking the total to 230 customers, of which top five customers are in the $50 million club, with 12.9 per cent share were added to the list.

"New business contributed 12 per cent of revenue during the quarter ending December, 2006," Nadar said.

President Vineet Nayar said, "The Skandia UK and Celestica Inc deal provided the much-needed growth impetus. Among the key growth catalyst, Australian market was one of the factors for the growth in the quarter."

He further added that during the next quarter, the company will be focusing more on the aerospace vertical as more and more companies enter India.

In the case of HCL BPO, the company ended the quarter with 12 per cent sequential rise over the previous quarter.

"The quarter has been marked by our foray into the insurance domain with the UK and the US-based insurance companies and a major deal win from a leading media corporation in the UK for high value customer services process, said Ranjit Narasimhan, executive vice-president, HCL Technologies and head of the BPO operations.

"The quarter also saw good ramp-up in existing processes and an increase in employee strength by 1069, taking it to 12,181," he added.