HCL Tech Q3 net rises 7.8% to Rs2,070 cr

HCL Technologies, India's fourth-largest software services exporter, has reported a 7.8 per cent increase in consolidated net profit at Rs2,070 crore for fiscal third quarter ended 31 December 2016.

The company had posted a net profit of Rs1,920 crore in the year-ago quarter.

HCL's consolidated revenue rose 14.2 per cent to Rs11,814 crore in the October-December 2016-17 quarter compared to the Rs10,341 crore reported in the comparable period of the previous fiscal.

In dollar terms, the company's net profit increased 5.2 per cent to $306 million in the October-December 2016-17 quarter while revenues grew 11.4 per cent to $1.74 billion during the quarter.

HCL has announced a dividend of Rs6 per share for the quarter.

The company expects its full year 2016-17 revenue to grow 12-14 per cent (based on average exchange rates for 2016 - 17), which translates into 10-12 per cent in dollar terms based on 31 December 2016 exchange rates.

''We expect our FY17 revenues to be in the middle of this range,'' HCL Tech said, adding that the acquisitions and IP-led partnerships announced after 30 September 2016, are likely to additionally contribute 0.6 to 1 per cent in revenues, depending on the date of consummation of the Geometric deal.

HCL Tech had acquired Geometric Software in April last year in a $200-million all-stock deal.

''We continue our robust financial performance with a revenue growth of 3 per cent (quarter-over-quarter) and 13.8 per cent (year-on-year) in constant currency terms. The richness in our offerings coupled with our Mode 1-2-3 growth strategy is helping us gain a higher share of our clients' wallet reflected in the increasing revenue contribution from our Top 5, Top 10 and Top 20 customers,'' HCL Technologies president and CEO C Vijayakumar said.

Revenues from fixed price and managed services contracts increased to 63.2 per cent this quarter from 61.3 per cent, further strengthening the success in outcome based business model, he added.

HCL Tech reported broad-based growth across all revenue segments with the Americas and Europe growing by 13.6 per cent and 17.6 per cent, respectively, year-on-year.

For the quarter ended 31 December 2016, HCL Technologies had cash and cash equivalents of Rs2,214.5 crore.

The company said it had signed nine transformational deals during the quarter across service lines, industry verticals and geographies.

HCL's total headcount stood at 1,11,092 at the end of December 2016, with a gross addition of 8,467 employees. The attrition for IT services on LTM (last twelve months) basis stood at 17.9 per cent.

On the BSE, the HCL stock was down Rs14.30 or 1.67 per cent at Rs842.85 in the morning trade.