HCL Tech's Q3 profit soars 73% to Rs 1,040 crore

HCL Technologies has announced a 73% rise in its quarterly profit. The net profit rose to Rs 1,040 crore during the third quarter ended on March 31, 2013, up 72.6% when compared to the corresponding period last year and 7.8% higher than the sequentially preceding quarter.

Revenues stood at Rs 6,425 crore, up 23.2% YoY and 2.4% QoQ; EBIT stood at Rs 1,276 crore, up 56% YoY and 2.5% QoQ.

The company also announced dividend of Rs 2 per share on 41st consecutive quarter of dividend payout. It has appointed Keki Mistry as an Independent Director on the board.

HCL Technologies has registered a jump of nealy 27% in total income from operations, while the net profit has doubled in the third quarter that ended on March 31, 2013 on a standalone basis.

In a press release, Shiv Nadar, chairman and chief strategy officer of HCL Tech, stated, "the growth momentum was because of 'uncompromising focus'' on some strong value fundamentals and cited the corporate governance practices as 'one such foundation' that enabled HCL Tech to generate long-term value for all its stakeholders".

Vineet Nayar, vice-chairman, is of the view that the company's stresses on delivering 'technology-led business process transformation' to global 2000 corporations is one of the reasons for its excellent show in the past few quarters.

He visualises the future of the IT services industry in 'transforming traditional outsourcing models to higher value, innovation driven, non-linear and outcome-based business models'.

Anant Gupta, president & CEO, said, "the company's net margins had improved during the 6 consecutive quarters and were up by 51.5% along with a sharp 14.6% US dollar constant currency growth for the 12-month period ended March 31, 2013."

 

During the 12-month period ended March 31, 2013, the revenues had gone up 27% YoY in rupee terms and the EPS was up 74%.

The increase in EPS was possible because of the increase in gross margin and operating margin by 340 bps and 420 bps YoY, respectively according to Anil Chanana, CFO, HCL Technologies.