HCl Technologies on Monday posted 2.8 per cent fall in consolidated net profit at Rs1,783 crore for June 2015 quarter on account of higher selling, general and administrative (SG&A) expenses.The company had posted a net profit of Rs1,834 crore in the year-ago period, it said in a statement.
However, its consolidated revenues rose 16.1 per cent to Rs9,777 crore in April-June as against Rs8,424 crore in the same period last year as per US GAAP accounting.The firm follows July-June as the fiscal year.“We have invested in delivery and co-innovation centres as well as roped in 100 senior leaders... The growth has been broad-based with all verticals posting strong double-digit performance in 2014-15,” HCl Technologies President and CEO Anant Gupta told reporters here.
The pipeline is bigger and buoyant and HCl remains positive on the way market is performing, he added.Reacting to the results, the company’s scrip fell to Rs937.40, down 5.94 per cent from its previous close on the BSE.Kotak Securities Head of Private Client Group Research Dipen Shah said the results were lower than expectations, both on the revenues and margins front.
“There was a significant miss on the margin front. The relatively higher utilisation rates coupled with the need to increase sales, marketing investments and investing in emerging businesses may continue to impact profitability in the short term,” he added.