TCS logs into 50% quarterly profit rise, HCL Tech 58%
17 Jan 2014 5:40 AM IST
India’s top software services exporter posts Rs 5,333-crore net in Oct-Dec period
The country's largest software services exporter had reported a net profit of Rs 3,550 crore in the year-ago period, as per a BSE filing citing Indian GAAP figures.
Net profit as per Indian IFRS rose by nearly 50 per cent to Rs 5,314 crore in the third quarter as against Rs 3,549.62 crore in the corresponding period in the previous year.
Consolidated revenues of the city-based firm rose by 32.5 per cent to Rs 21,294 crore in the October-December quarter this fiscal compared to Rs 16,070 crore in the same quarter of 2012-13 fiscal. TCS chief executive officer and managing director N Chandrasekaran described the quarter as a ‘very good one’.
Quarter-on-quarter (q-o-q) in rupee terms, TCS net profit rose by 15.1 per cent and revenues were up by 1.5 per cent.
‘Strong international demand for our services and discipline in execution has helped Tata Consultancy Services maintain its momentum and post robust growth in volumes as well as realisation,’ Chandrasekaran said.
He said the company signed eight large deals in the quarter but was not so optimistic about the domestic market till June or September. He also described the margins above their estimate of 27 per cent and attributed the good numbers to lower forex losses.
International business grew by 3.8 per cent in dollar terms, he said, adding that attrition stood at 10.9 per cent during the quarter.
The diversified market presence and services portfolio has helped the company overcome seasonal weakness and soft demand in the Indian market, he added. Buoyed by the results, TCS also increased its hiring target for 2013-14 fiscal by 5,000 to 55,000.
In US dollar terms, net income rose by 31.7 per cent to $858 million in the third quarter of the current fiscal against $652 million in previous fiscal, while revenues were up by 17 per cent to $3.44 billion against $2.95 billion during the same period. Sequentially in dollar terms, net profit rose by 14.7 per cent and revenues were up by 3 per cent.
‘Growth in the third quarter was driven by industries like Life Science & Healthcare, Manufacturing, Media, Travel & Hospitality and Telecom. The company's broad based presence across markets and services helped overcome seasonal weakness in some markets.
Europe led growth, driven by the continuous investments being made in that market, while North America and the United Kingdom also grew during the quarter,’ Tata Consultancy Services CFO Rajesh Gopinathan said.
Country’s 4th largest IT firm beats market expectations, takes 2013 revenue above $5 bn
New Delhi: Beating market estimates, India's fourth-largest IT services firm HCL Technologies on Thursday posted a 58.4 per cent rise in its consolidated net profit for the quarter ended 31 December, aided by growth in Europe and contracts won in financial services, infrastructure and manufacturing.
The Noida-based firm's revenue crossed $5 billion in 2013, a first for the company.
HCL's profit rose to Rs 1,496 crore in the second quarter ended 31 December from Rs 944 crore in the year-ago period.
The company follows a July-June financial year. Consolidated revenue increased 30.4 per cent to Rs 8,184 crore from Rs 6,278 crore. In the July-September quarter, the firm had reported a profit of Rs 1,416 crore and revenue of Rs 7,961 crore.
'Again, a good performance in the quarter. In calendar year 2013 we crossed the $5 billion mark and three of our businesses grew over $1.5 billion mark,' HCL Technologies President and CEO Anant Gupta told reporters here. Infrastructure and manufacturing services each crossed the $1.5 billion mark, as did the Europe business, he said.
'As a company, HCL has always differentiated itself on two key pillars, corporate excellence and governance and trust through transparency and flexibility. Our sustained efforts in these areas continue to be recognised,' HCL Technologies chairman Shiv Nadar said.
In dollar terms, profit rose 39.1 per cent to $242 million in the quarter from $174 million a year earlier.
Revenue climbed 14.5 per cent to $1.32 billion. In the July-September quarter, HCL reported a profit of $226 million and revenue of $1.27 billion.
'We have achieved a profitable growth trajectory with yet another stellar quarter of 4 per cent Q-o-Q revenue growth and 39.1 per cent Y-o-Y net income growth,' Gupta said.
HCL signed 15 deals across services, with infrastructure constituting half. The financial and manufacturing verticals led wins with 80 per cent of the bookings coming from Fortune 500 or Global 2000 customers, he added.
'A majority of these deals came from the US and Europe in the sectors of financial services and manufacturing,' he said.
HCL had cash and cash equivalents of $135.1 million as of 31 December against $96.8 million on 30 September. Its client base stood at 844, while the head count was 88,332, with a gross 7,593 and net 1,136 employees added. Although the October-December quarter is traditionally weak for IT services, HCL Technologies CFO Anil Chanana said the company achieved growth due to cost and operational efficiencies, among other factors.
'The asset light model, reflected by our fixed asset turnover at 10 per cent of revenues, and efficient working capital management continued to keep the return on equity at a historic high of 35 per cent and operating cash flows in excess of 100 per cent of net income,' he added.
The country's largest software services exporter had reported a net profit of Rs 3,550 crore in the year-ago period, as per a BSE filing citing Indian GAAP figures.
Net profit as per Indian IFRS rose by nearly 50 per cent to Rs 5,314 crore in the third quarter as against Rs 3,549.62 crore in the corresponding period in the previous year.
Consolidated revenues of the city-based firm rose by 32.5 per cent to Rs 21,294 crore in the October-December quarter this fiscal compared to Rs 16,070 crore in the same quarter of 2012-13 fiscal. TCS chief executive officer and managing director N Chandrasekaran described the quarter as a ‘very good one’.
Quarter-on-quarter (q-o-q) in rupee terms, TCS net profit rose by 15.1 per cent and revenues were up by 1.5 per cent.
‘Strong international demand for our services and discipline in execution has helped Tata Consultancy Services maintain its momentum and post robust growth in volumes as well as realisation,’ Chandrasekaran said.
He said the company signed eight large deals in the quarter but was not so optimistic about the domestic market till June or September. He also described the margins above their estimate of 27 per cent and attributed the good numbers to lower forex losses.
International business grew by 3.8 per cent in dollar terms, he said, adding that attrition stood at 10.9 per cent during the quarter.
The diversified market presence and services portfolio has helped the company overcome seasonal weakness and soft demand in the Indian market, he added. Buoyed by the results, TCS also increased its hiring target for 2013-14 fiscal by 5,000 to 55,000.
In US dollar terms, net income rose by 31.7 per cent to $858 million in the third quarter of the current fiscal against $652 million in previous fiscal, while revenues were up by 17 per cent to $3.44 billion against $2.95 billion during the same period. Sequentially in dollar terms, net profit rose by 14.7 per cent and revenues were up by 3 per cent.
‘Growth in the third quarter was driven by industries like Life Science & Healthcare, Manufacturing, Media, Travel & Hospitality and Telecom. The company's broad based presence across markets and services helped overcome seasonal weakness in some markets.
Europe led growth, driven by the continuous investments being made in that market, while North America and the United Kingdom also grew during the quarter,’ Tata Consultancy Services CFO Rajesh Gopinathan said.
Country’s 4th largest IT firm beats market expectations, takes 2013 revenue above $5 bn
New Delhi: Beating market estimates, India's fourth-largest IT services firm HCL Technologies on Thursday posted a 58.4 per cent rise in its consolidated net profit for the quarter ended 31 December, aided by growth in Europe and contracts won in financial services, infrastructure and manufacturing.
The Noida-based firm's revenue crossed $5 billion in 2013, a first for the company.
HCL's profit rose to Rs 1,496 crore in the second quarter ended 31 December from Rs 944 crore in the year-ago period.
The company follows a July-June financial year. Consolidated revenue increased 30.4 per cent to Rs 8,184 crore from Rs 6,278 crore. In the July-September quarter, the firm had reported a profit of Rs 1,416 crore and revenue of Rs 7,961 crore.
'Again, a good performance in the quarter. In calendar year 2013 we crossed the $5 billion mark and three of our businesses grew over $1.5 billion mark,' HCL Technologies President and CEO Anant Gupta told reporters here. Infrastructure and manufacturing services each crossed the $1.5 billion mark, as did the Europe business, he said.
'As a company, HCL has always differentiated itself on two key pillars, corporate excellence and governance and trust through transparency and flexibility. Our sustained efforts in these areas continue to be recognised,' HCL Technologies chairman Shiv Nadar said.
In dollar terms, profit rose 39.1 per cent to $242 million in the quarter from $174 million a year earlier.
Revenue climbed 14.5 per cent to $1.32 billion. In the July-September quarter, HCL reported a profit of $226 million and revenue of $1.27 billion.
'We have achieved a profitable growth trajectory with yet another stellar quarter of 4 per cent Q-o-Q revenue growth and 39.1 per cent Y-o-Y net income growth,' Gupta said.
HCL signed 15 deals across services, with infrastructure constituting half. The financial and manufacturing verticals led wins with 80 per cent of the bookings coming from Fortune 500 or Global 2000 customers, he added.
'A majority of these deals came from the US and Europe in the sectors of financial services and manufacturing,' he said.
HCL had cash and cash equivalents of $135.1 million as of 31 December against $96.8 million on 30 September. Its client base stood at 844, while the head count was 88,332, with a gross 7,593 and net 1,136 employees added. Although the October-December quarter is traditionally weak for IT services, HCL Technologies CFO Anil Chanana said the company achieved growth due to cost and operational efficiencies, among other factors.
'The asset light model, reflected by our fixed asset turnover at 10 per cent of revenues, and efficient working capital management continued to keep the return on equity at a historic high of 35 per cent and operating cash flows in excess of 100 per cent of net income,' he added.
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