HCL Tech logs 6% Q3 profit rise to `2,194 cr
19 Jan 2018 10:36 PM IST
New Delhi: IT major HCL Technologies on Friday said its consolidated net profit grew 6 per cent to Rs 2,194 crore in the December 2017 quarter and exuded confidence over meeting its revenue and margins forecast for FY2018.
The country's fourth largest IT services firm had posted a net profit of Rs 2,070 crore in the year-ago period.
HCL Tech's revenues grew 8.4 per cent to Rs 12,808 crore, from Rs 11,814 crore in the year-ago period, as per the US GAAP accounting norms.
"We finished last quarter on a strong note, with a growth of 3.3 per cent sequentially and 11.2 per cent year-on-year in constant currency terms," HCL Technologies President and CEO C Vijayakumar told reporters here.
He added that going ahead, the company remains bullish on the market.
"... (We) intend to close the year within our guided range of revenue and margins, though you may see us deliver revenue at the lower end of our guidance. FY'19 also looks promising from the vantage point where we stand today," he added.
In July, the company had said it expects FY2018 revenue for the company to grow in 10.5-12.5 per cent in constant currency terms. Operating Margin (EBIT) range for the ongoing fiscal was forecast to be from 19.5-20.5 per cent.
Vijayakumar said the December 2017 quarter was a strong one in terms of deal signings where HCL signed 20 transformational deals across services.
He, however, declined to comment on the contract value.
"Our bookings have been the highest this quarter since the last 12 quarters," he said.
Vijayakumar said clients' IT budgets are expected to be flat or marginally up and "even though there is tax element (from the US) but it will take some more time to start reflecting in the budgets".
"Every client thinks IT is important in their business transformation, you hear that uniformly across the board," he said.
He added that the company continues to pursue IP partnerships and acquisitions which is a "critical element" of the company's growth strategy.
"We have a healthy pipeline of both organic and inorganic on this front and this gives us a lot of optimism as we move into FY'19," he said.
In dollar terms, the company's net profit grew 11.2 per cent to $340.3 million, while revenues rose 13.9 per cent to $1.98 billion compared to the year-ago period.
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