Leading information technology company HCL Technologies
has posted a 21.18-per cent increase in net profit to
Rs 108.69 crore for the quarter ended 30 September 2001,
as compared to the Rs 89.69 crore in the first quarter
of this financial year. The total income for the quarter
surged by 23.15 per cent to Rs 216.79 crore from Rs 176.04
crore in the same period last year.
board has approved a proposal to provide interest-free
loans not exceeding Rs 50 crore to HCL Technologies Employees
Trust for the purchase of equity shares of the company
from time to time.
Technologies chairman, president and CEO Shiv Nadar said:
Our offshore business continues to be robust and its
competitive positioning remains unchanged despite the
downturn witnessed in early 2001 and the post-September
11 scenario. I am also happy that our entry into business
process outsourcing has started yielding good results.
recent acquisitions in the banking and EAI practices,
in line with our non-linear growth strategy, will start
contributing to revenues from the second quarter. I am
confident of achieving the revenue target of Rs 1,750
crore and a net profit of Rs 575 crore after provisionings
in the financial year 2002, he said.
profit fell short of analysts forecasts, but the company
said it is confident that it would achieve its full-year
net profit target of Rs 575 crore after provisions.
the meantime, IT education firm NIIT has reported a 86.2
per cent drop in net profit at Rs 12.51 crore for the
quarter ended September 2001, against Rs 90.8 crore registered
in the corresponding quarter in the previous financial
sales of the company stood at Rs 164 crore for the same
quarter, against Rs 215 crore in the same period, representing
a 23.7-per cent fall. Global revenue stood at Rs 247.7
crore in the period, against the Rs 366 crore in the corresponding
quarter last year. The board also declared a dividend
of Rs 4.50 on each share of Rs 10 face value.
the number one IT education and training institute in
the country, has reported an operating loss from this
very business for the first time in the quarter ending
September, NIITs last quarter. This quarter is considered
to be the best time for education companies with maximum
new admissions taking place in the July to September period.
Analysts pointed out that this did not bode well for NIIT.
The operating margin in the quarter stood at 10.82 per
cent as against 48.52 per cent in the fourth quarter ended
believes that the economic slowdown will lead to a consolidation
in IT education. The process of clearing out non-serious
players, which started early in the season, continued
during the fourth quarter, as a few more players folded
up. It is expected that in an uncertain period of the
market-churn, students will choose brands like NIIT because
of the trust and security that this brand offers.
on NIIT`s Q4 performance, NIIT CEO Vijay Thadani said:
Our strategy for the learning business has given us a
2-per cent increase in marketshare, while our focus on
verticals in software gave us significant wins in two
Fortune 500 customers last quarter. Q4 saw the addition
of 26 new customers, including Fortune 500 companies -
Office Depot, the world`s leading provider of office products;
and Marks and Spencer, a global retail chain.
order intake of US $17 million in Q4 marks a 55-per cent
improvement over US $11 million in Q3 FY 2001. The financial
segment saw the addition of Pension Trust of the UK, Leigh
Mardon in Australia, and Skindia in Japan as new customers
Solutions provided in finance also included implementation
of NIITs own IPR offering, Electronic bill presentment
and payment, for two large clients.
from finance, insurance and banking verticals increased
from 19 per cent in Q3 to 21 per cent in Q4 in line with
the strategy to focus on this segment. NIITs people strength
at the end of Q4 was 3,774. It has been following the
just-in-time hiring practice since March 2001. In software
solutions, NIIT is creating two major strategic business
units (SBUs) to enter into new vertical segments of transport
and retail. NIIT will also enhance its focus on the existing
vertical segment of financial services by dividing it
into wholesale, insurance and retail.
is planning to double the education network in Andhra
Pradesh to 200 over the next two years and increase the
number of NIIT domestic centres to 3,000 (2,467) by September
2002. While the delivery of computer education to students
in over 1,100 government schools in Karnataka, Punjab
and Tamil Nadu continued, in Q4 NIIT added West Bengal
by bagging a pilot project for introducing computer education
in 100 government schools.
the next three years, online education is expected to
account for 10 to 15 per cent of NIITs total turnover.
The e-learning component of the global IT training market,
at US $1.7 billion, is growing at a CAGR of 56 per cent
and is projected to be a US $5.3-billion industry with
a 37-per cent share of the overall IT training
market by 2003.
in NIITs international education business are currently
growing by around 50 per cent per annum and it is expected
to sustain a similar topline growth over the next three
to four years. This should give a sustained revenue growth
in learning solutions of 12 to 15 per cent per annum over
the next three to four years.