HCL Tech's quarterly profit grows by 6.1% to ₹2,171 cr
27 July 2017 5:58 PM GMT
India's fourth largest software exporter HCL Technologies on Thursday posted 6.1 per cent rise in consolidated net profit at Rs 2,171 crore for the April-June quarter, helped by broad-based growth across verticals like financial services and healthcare.
The company had a net profit of Rs 2,047 crore in the year-ago period. HCL Tech's consolidated revenue grew 7.2 per cent to Rs 12,149 crore in April-June 2017 as against Rs 11,336 crore in the same quarter of 2016-17. Stock markets cheered the first quarter numbers with its scrip rising 3.87 per cent to touch one-year high of Rs 926 on BSE in early trade.
"We continue to propel forward on our Mode 123 growth strategy, delivering a revenue growth of 2.6 per cent quarter-on-quarter and 12.2 per cent year-on-year in constant currency terms in Q1 FY2018," HCL Technologies President and CEO C Vijayakumar told reporters here.
Margins grew from 20 per cent to 20.1 per cent through continued superior execution in core business, integration and assimilation of the acquired entities, as well as IP investments, he added. HCL Technologies also maintained its revenue growth guidance of between 10.5-12.5 per cent in constant currency terms.
"We see a positive environment ahead. While the deal size is coming down for Mode 1 service (plain outsourcing services), there is a huge opportunity in Mode 2 and 3 services as clients look for more digital services," he said.
However, HCL Technologies' net profit declined 6.6 per cent on a sequential basis on account of a tax provision of $45.5 million paid during March 2017 quarter. In dollar terms, the company's net profit increased 10.3 per cent to $336.7 million in the reported quarter, while revenues grew 11.4 per cent to $1.88 billion. During the quarter, 13 transformational deals were signed across service lines, industry verticals and geographies.
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