HCL Tech Q2 net up 16.7% at Rs2,014 cr; sees 12-14% annual revenue growth

IT services firm HCL Technologies has reported a net profit of Rs2,014 crore for the quarter ended 30 September, a 16.7 per cent increase compared to the net profit of Rs1,726 crore in the corresponding quarter of the previous financial year, HCL Technologies stated in a release.

HCL reported revenues of Rs. 11,519 crore for the July-September quarter, a 14.1 per cent increase from Rs10,097 crore in the year-ago quarter, as per US GAAP accounting norms.

On a sequential basis, the company's net profit was lower by 1.6 per cent against Rs2,047 crore in April-June 2016. Revenues, however, grew 1.6 per cent from Rs11,336 crore in the previous quarter.

In constant currency terms, HCL Tech's revenues were up 12.8 per cent year-on-year.

In dollar terms, the company's net profit grew 14.2 per cent to $301.2 million while revenues rose 11.5 per cent to $1.72 billion year-on-year.

The company maintained its revenue growth guidance for 2016-17 at 12-14 per cent on constant currency basis.

''HCL continues to be the partner of choice for the 21 Century Enterprise through our differentiated strategy encompassing core services, integrated next-generation offerings and platforms, in line with our Mode 1-2-3 growth strategy,'' HCL Technologies' new president and CEO C Vijayakumar said.

This has helped deliver a strong growth of 2.8 per cent quarter-on-quarter and 12.8 per cent on-year this quarter in constant currency on the back of strong first quarter (of 2016-17) performance in constant currency, he added.

The company has announced a dividend of Rs6 per share.

During the quarter, HCL Technologies added 9,083 people (gross), taking the total headcount to 1,09,795 as on 30 September 2016. Attrition in IT services in the reported quarter stood at 18.6 per cent.

HCL signed 12 transformational deals this quarter, across service lines and industry verticals.

The company's cash and cash equivalents stood at Rs1,242.8 crore at the end of September 30, 2016.

Meanwhile, HCL Technologies appointed the current chief operating officer C Vijayakumar as chief executive officer in place of Anant Gupta who resigned from the post, the company has announced.

"Anant Gupta has decided to leave the company to pursue personal interests outside of HCL," it said in a statement, adding that C Vijayakumaras would take over as the President and CEO with immediate effect.

"Vijay has been a transformational leader in the company leading from the front. His vision and flawless execution track record best positions him for taking our journey forward," HCL Technologies chairman and chief strategy officer Shiv Nadar said.