Do you want to report this message as spam?

HCL Tech Q2 net jumps 34.2%; scrip hits year-high

19 Jan 11 11:29 AM
NEW DELHI: Software exporter HCL Technologies on Wednesday reported a 34.2 per cent jump in net income to Rs 399.70 crore for the quarter ended December 31, 2010.

The company had posted a net income of Rs 297.7 crore in the October-December quarter last fiscal, HCL Technologies said in a statement.

The consolidated revenue of the company as per US GAAP, grew by 27.8 per cent to Rs 3,888.4 crore in the December quarter from Rs 3,041.4 crore in the year-ago period, the statement added.

HCL Technologies has also declared a dividend of Rs 2 per share.

"The dynamic demand environment necessitates a sharp focus on innovation and tangible value generation for customers. We continued to register impressive win ratios and superior customer acquisitions with 50 plus transformational deals signed during the year," HCL Tech Vice Chairman & CEO Vineet Nayar said.

The company added 2,049 employees on a net basis in the said quarter, and made 8,379 gross additions, taking its total strength to 72,267.

Bolstered by the smart quarter numbers, shares of HCL Tech zoomed by 5.93 per cent to hit a year's high of Rs 517.50 a piece in early trade on BSE.

The firm also said its business outside the U.S. and Europe, its biggest markets, rose more than 60 per cent.

Last week, Infosys Technologies sparked concerns about the outlook for India's showpiece outsourcing sector after it missed estimates for profit and future sales growth and warned of sluggish global economic growth, lowering expectations from other IT companies.

However, Tata Consultancy Services , India's top software services exporter, on Monday beat forecasts with a 30 per cent rise in quarterly profit and said it expected strong demand for outsourcing services, easing the concerns somewhat.

HCL's gross margins expanded by more than 4 per centage points to 35.7 per cent during the December quarter. The improvement comes even as Indian software services companies' margins face a hit from high attrition rates, constant hiring and wage raises.