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Tuesday , 16 October 2018
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HCL net up 8.6% yearly, flat quarterly in Q2 (Lead)

New Delhi, Oct 25 (IANS) HCL Technologies on Wednesday reported Rs 2,188 crore consolidated net profit for the second quarter (Q2) of fiscal 2017-18, registering a 8.6 per cent yearly growth and 0.8 per cent flat quarterly growth in rupees.

The net profit was Rs 2,014 crore in the same period a year ago and Rs 2,171 crore a quarter ago.

In a regulatory filing on the BSE, the Noida-based software major said consolidated revenue for the quarter (Q2) under review grew 7.9 per cent yearly and 2.3 per cent quarterly to Rs 12,434 crore.

Revenue was Rs 11,519 crore in the like period a year ago and Rs 12,149 crore a quarter ago.

Under the International Financial Reporting Standard (IFRS), net income at $339 million is up 12.6 per cent from $301 million a year ago but flat (0.7 per cent) from $337 million a quarter ago.

Revenue in dollar terms grew 11.9 per cent annually to $1,928 million from $1,722 million and 2.3 per cent sequentially from $1,884 million quarter ago.

The outsourcing firm has projected 12.1-14.1 per cent revenue growth in dollar terms for the current fiscal (FY 2018), based on exchange rates of USD at Rs 65.5 on September 30.

“Operating margin or earnings before interest and tad (Ebit) is expected to be in 19.5-20.5 per cent range,” the company said in the filing.

Ebit for the Q2 at Rs 2,451 crore is up 5.7 per cent annually from Rs 2,318 crore a year ago but flat (0.3 per cent) from Rs 2,444 crore quarter ago in rupee.

In dollar terms, Ebit at $380 million is up 9.6 per cent annually from $347 million a year ago but flat (0.3) per cent from $379 million quarter ago.

Ebit margin, however, remained flat at 19.7 per cent as against 20.1 per cent a year ago and 20.7 per cent a quarter ago.

“As technology-driven business models take root, organisations are adapting to the change by investing in disruptions and technology innovations,” HCL Chairman and Chief Strategy Officer Shiv Nadar said in a statement here.

The company’s software services business grew across verticals spanning manufacturing, financial services, public services, retail and consumer packaged goods and life science and healthcare.

“Our mature verticals like manufacturing and financial services, which contribute 60 per cent to the revenue, grew 21.9 per cent and 14.2 per cent respectively,” said Nadar.

Strong client addition continued in Q2 with 24 new deals in $5-million price band, 11 in $10-million, 2 in $20 million, 3 in $40 million, 5 in $50 million and 1 in $100 million.

“Our top 20 customers grew faster than our average in the quarter, reflecting the performance of our client partner programme,” said Chief Executive Officer C. Vijayakumar.

The company’s Board of Directors declared 100 per cent dividend or Rs 2 per share of Rs 2 face value for the second consecutive quarter.

Cash generation was robust, with net income to operating cash flow conversion at 96 per cent in the last 12 months.

With the addition of 8,645 people, the headcount increased to 119,040 in Q2 from 117,781 quarter ago and 109,795 a year ago.

“Our attrition excluding involuntary declined to 15.7 per cent from 16.2 per cent quarter ago and 18.6 per cent a year ago, while employee utilisation remained 86 per cent, same as quarter ago but up from 83.3 per cent a year ago,” added the statement.

The company’s blue-chip scrip of Rs 2 face value was trading on the BSE at Rs 880 per share, which is Rs 33.45 lower than Tuesday’s closing rate of Rs 913.45 and opening price of Rs 900 per share.

–IANS
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