The Shiv Nadar-promoted HCL Technologies today told analysts and major shareholders that the company expects its revenues to increase by 25 per cent for financial year 2002 to Rs 1,750 crore.
It expects earnings to increase by 23 per cent to Rs 600 crore during the same period.
This is despite the short-term impact in business of its clients and also in onsite billing in the three weeks of September 2001 because of terror attacks on the US on September 11, 2001.
Last month, while announcing its annual results, HCL Technologies had reported Rs 488 crore in net profit for the fiscal 2000-01 and had projected a growth rate of more than 25 per cent in the current fiscal.
During the conference call today, the company, according to industry sources, also told analysts that the outlook for the financial year 2002 was consistent with what had been said earlier.
The company said the earnings for fiscal 2002 of Rs 600 crore excludes Rs 25 crore earmarked for any possible diminution in value of investments in technology funds as an abundant precaution against possible impact of the tragic events in US.
In a notice to the Bombay Stock Exchange, HCL Tech said it expects revenues for first quarter ending September of fiscal 2002 to grow year-on-year in excess of 17 per cent on a base of Rs 318 crore same period last year.
The notice to the BSE said HCL Technologies' revenues for FY 01 were Rs 1,405 crore and the last quarter (April-May-June 01) revenues were Rs 369 crore.
"Despite the short-term impact in business of their clients and also in onsite billing in the three weeks of September 01 because of tragic events of September 11, 2001, it expects that their revenues for fiscal 2002 could exceed Rs 1,750," the HCL Tech communique said.
The notice said the assumption of profits from acquisitions is not a significant contributor to this growth and will be around 2-3 per cent.
"We have been engaged in few other acquisitions which are strategic to our growth strategy, however, as has been our policy we would take our time evaluating these, doing extensive due diligence through multi-team structure, do management reviews to ensure confidence in the new business case construct," the notice said.
The notice said HCL Technologies has entered into strategic alliance or acquired partial equity stake in some companies for small consideration, which it hopes to ramp up in financial year 2003.
