Information technology companies continue posting better than expected second quarter results. After Infosys and TCS, HCl Technologies reported a 63.8 per cent increase in consolidated net profit for the July-September. Aided by a weak rupee and encouraging macro-economic trends, country’s fourth largest software services exporter’s net profit rose to Rs1,416 crore from Rs864 crore in the same quarter last year.
Consolidated revenues also grew sharply by 31.2 per cent to Rs7,961 crore in the July-September quarter from Rs6,069 crore in the same quarter of last fiscal. Commenting on the performance, HCl Technologies Chairman and Chief Strategy Officer Shiv Nadar said, “Against the backdrop of encouraging macro-economic trends, these results cement HCl’s position as a company with a strong and differentiated business model.”
In dollar terms, net profits rose by 42.8 per cent to $ 225.6 million against $ 158 million in the last fiscal. Revenues rose by 14.1 per cent to $ 1.27 billion from $ 1.11 billion in the corresponding quarter last financial year.
“HCl continues to strengthen its position in the momentum markets of the industry with Europe crossing a milestone run rate of $ 1.5 billion reflecting a very healthy 23.6 per cent growth on year on year basis,” added Anant Gupta, President & CEO of HCl Technologies. Company posted growth in net profit and revenue for the 8 successive quarter.
“From a deal win perspective, we booked over $ 1 billion this year. Nine transformational deals, which are a significant mix of integrated deals between applications and infrastructure, driving the growth,” Anant added. The company has added 11 new clients during July-September, taking its total clients to 838. Out of the 11 new clients, six are in the $ 20 million segment, three in $ 10 million and one each in $ 40 million and $ 100 million.
On currency impact, company’s CFO Anil Chanana said, “Currency did play a good part in expanding our margins, particularly in the first quarter. Efficiencies also helped us is expanding margins. Wage hikes took away 50 basis points.”
Till September 30, 2013, HCl Technologies has cash and cash equivalents of $ 96.8 million compared to $ 123.3 million at the end of June 30, 2013. HCl is also planning to expand its near-shore Mexico facility to cater to clients in the North American market.