HCL Tech logs 15% Q1 profit rise, expects 12-14% FY17 revenue growth
The Noida-based firm, which had posted a net profit of Rs 1,783 crore in the April-June 2015 quarter, has resumed its practice of presenting a revenue outlook for the new fiscal after 12 years. For the reported quarter, HCL Tech’s revenues grew 15.9 per cent to Rs 11,336 crore, from Rs 9,777 crore in the year-ago period, as per US GAAP accounting norms.
For FY2016-17, it expects its topline to grow 12-14 per cent without fluctuations in currencies, higher than Nasscom’s outlook of 10-12 per cent rise in IT industry’s export revenues for the fiscal. On constant currency basis, HCL Tech’s revenues were up 11.2 per cent year-on-year in the June 2016 quarter.
“It has been a very good quarter, we have started with a very good performance with 6 per cent revenue growth quarter-on-quarter in constant currency terms,” HCL Technologies President and CEO Anant Gupta told reporters here. He added that the growth momentum is broad based, encompassing all sectors and service lines, propelled by its focus on new technologies and robust business model.
Reacting to results, the company’s shares were trading at Rs 827.45 apiece, up 3.35 per cent from its previous close on the BSE. “For Q1 FY2017, the company posted numbers better than expected, on all fronts,” Angel Broking VP (Research - IT) Sarabjit Kour Nangra said. In dollar terms, the company’s net profit grew 9.5 per cent to $305.2 million, while revenues rose 10 per cent to $1.69 billion compared to the year-ago period. HCL Technologies’ deal with Volvo’s IT services division in February added over $40 million to the June quarter revenue, up 6.5 per cent than the previous quarter.
HCL Tech earlier followed the July-June fiscal but has now moved to April-March cycle as mandated by Companies Act. Asked about the reason for resuming its practice of giving revenue outlook, Chief Financial Officer Anil Chanana said the company wanted to give a “lead indicator for the markets to take a view of the company” and its performance. HCL Tech has announced a dividend of Rs 6 per share.
... scrip jumps 8%
New Delhi: Shares of HCL Technologies on Wednesday rallied as much as eight per cent in early morning trade on the bourses after the IT services firm reported 15 per cent rise in its first quarter net profit. The company reported a 14.8 per cent increase in net profit to Rs 2,047 crore for the quarter ended June 30, 2016. The Noida-based firm had posted a net profit of Rs 1,783 crore in the corresponding quarter of the last fiscal. Reacting to the good numbers, shares of the company opened on a strong note at Rs 869.