HCL Tech Q2 net up 43.3% (y-o-y)

Business

oi-Sneha

By Sneha B K

Published: Tuesday, January 17, 2012, 13:40 [IST]

HCL technologies, the Noida based software service provider today reported second quarter earnings for its fiscal ended December 2011. The company has reported a consolidated profit after a tax of Rs 573 crore, better than expected by the analysts. In the previous quarter, it had reported a net profit of Rs 496.7 crore. In the previous quarter it had reported Rs 496.7 crore

The company's net income stood at Rs 573 crore up by 43.3% year on year (y-o-y).

The company follows July-June fiscal year. Its revenue grew by 13% to Rs 5,254 crore in the quarter ended December 2011 versus Rs 4,651.3 crore in the previous quarter.

HCL technologies' Earnings before interest taxes depreciation and amortization (EBITDA) margin has been increased to 18.5% vs 17.1% q-o-q. The EBITDA position is at Rs 972 crore when compared to Rs 795 crore in the previous quarter.

However, dollar revenue stood at 2% quarter on quarter (q-o-q), which came as dissatisfaction as analysts expected to be around 3%.

The board has declared an interim dividend of Rs 2 per equity share of Rs 2 face value, 36th consecutive quarter of dividend payout.

"This combined with 18 new transformational deal wins bears testimony to the uniqueness of HCL's business model in the current environment," HCL Technologies vice-chairman and CEO Vineet Nayar said at a press conference.

"The sequential margin expansion of 150 bps and EBIT and EPS growth of 42.6 per cent and 29 per cent year-on-year respectively in this quarter is a result of our continued investment in business that has resulted in higher returns for our shareholders," HCL Tech CFO Anil Chanana said.

"As economies contract and the job environment remains challenged, we at HCL are committed to creating local jobs, contributing to the welfare of local communities and pushing the pedal on enterprise philanthropy in continuing cognizance of our social responsibility," HCL Tech Chairman and Chief Strategy Officer Shiv Nadar said.

During the quarter, the company added 7,804 (gross) and 2,556 (net) people, taking its total headcount to 83,076 by the end of December 31, 2011.

GoodReturns.in