India's fourth-largest IT services provider HCL Technologies today announced that Vineet Nayar, CEO and Vice Chairman of the company will move away from his executive role by July 2013. Anant Gupta, who was promoted to the role of chief operating officer, is being elevated to the position of President and CEO of HCL Technologies.
Nayar, who restructured the company and took it onto a fast pace of growth will continue as the Vice Chairman and Joint Managing Director of the company till July 2013 and as Vice Chairman thereafter.
HCL Technologies that also announced its second quarter continued to report industry leading numbers with a volume growth of 3%. Its net profit for the quarter ended December 31, 2012 grew 68.5 per cent at Rs 965 crore. On a sequential basis, it was up 9%.
Revenue for the quarter at Rs 6,274 crore was up 19.6% year-on-year and 3% sequentially.
“On the back of this exceptional calendar year performance, our quarterly results demonstrate increasing momentum. In the October-December quarter, we grew 3.6% q-o-q, our highest over the last 5 quarters and 13% y-o-y. 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% y-o-y 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,” said Nayar.
The company said HCL has won 12 multi-year, multi-million dollar deals with Fortune500/Global 2000 corporations this quarter, six of which are large integrated engagements. A majority of these engagements are from Americas and Europe.
“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,” said Gupta, President & CEO, HCL Technologies.
In dollar terms, the company's net profit stands at $177.5 million, while the revenues are $1154.3 million. Business from Americas went up by 3.4% q-o-q. However, there has been a Forex loss of Rs 12.56 crore.
The board has declared an interim dividend of Rs 2 per equity share of Rs 2 face value.
"The cash generation, backed by higher profitability and efficient working capital management, continued to be robust...This quarter, HCL completes 10 straight years of quarterly dividend pay-out," HCL Tech CFO Anil Chanana said.
During the quarter, the company added 2,118 employees, taking its total headcount to 85,194 by the end of December 31, 2012.
HCL Technologies has rallied 5% to Rs 707 on the Sensex in opening deals after declaring its results this morning. The stock opened at Rs 701 and hit a 52-week high of Rs 709 on the National Stock Exchange.
