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HCL Tech net down on forex losses

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BS Reporter New Delhi
Last Updated : Jan 19 2013 | 11:37 PM IST

Net income down 36.3% year-on-year from Rs 342.5 crore.

Foreign exchange losses of Rs 201.3 crore ate into the profits of HCL Technologies, which posted a consolidated net income of Rs 218.1 crore for the third quarter ended March 31, 2009.

The net income was down 36.3 per cent year-on-year, from Rs 342.5 crore in the corresponding quarter last year. Consolidated revenue, at Rs 2,861.5 crore, was up 49.4 per cent year-on-year, from Rs 1,925.2 crore in the corresponding period of the previous year.

The company’s stock closed at Rs 125.05, down 9.65 per cent, on the Bombay Stock Exchange.

Sequentially (on a quarter-on-quarter basis), the company’s net income dipped 41.6 per cent, while revenue was up 16 per cent.

Dipen Shah, IT Analyst and vice-president, PCG Research, Kotak Securities, said: “Revenues missed our estimates and profits were also lower because of the forex losses. While the core IT services and BPO services businesses continued to witness challenges, infrastructure management services reported a decent growth on a Q-o-Q basis.”

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Enterprise application services and infrastructure services were the key growth drivers. The company signed new deals worth $250 million in the quarter and won 11 new contracts and is bullish on capital expenditure. It spent Rs 180 crore on capex in Q3. The company’s headcount was 54,026.

Commenting on the results, Vineet Nayar, CEO, HCL Technologies, said: “HCL’s response to the challenging environment has been focussed on growth and investing in emerging trends and solutions that create value for customers.”

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First Published: Apr 23 2009 | 12:17 AM IST

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