The Hindu Business Line : HCL Tech net income rises 47 pc in Q2

HCL Technologies on Tuesday reported a 46.7 per cent rise in its net income for the second quarter ended December 2004 to Rs 129.14 crore compared to Rs 88.02 crore in the same period previous year.

Its consolidated revenues during the period in reference rose 29.4 per cent to Rs 801.38 crore against Rs 619.29 crore in the year-ago period. The company also announced an interim dividend of 200 per cent on the face value of Rs 2 of each share for the quarter.

Compared sequentially, the net incomein the second quarter was 20.2 per cent lower than Rs 161.73 crore notched in the first quarter.

US accounted for 57.40 per cent of HCLT's revenues while Europe contributed 27.10 per cent and Asia-Pacific 15.50 per cent. During the quarter, the company added 16 new clients taking the total number of active clients to 493.

HCL Technologies, which is sitting on $430 million in cash, is considering acquisitions. "We are always on the look-out for the right kind of opportunity (for acquisitions). Internal discussions have been held but we are not talking to anyone," Mr S.L. Narayanan, Corporate Vice-President (Finance), HCL Technologies said.

Meanwhile, the company has said that it is in the process of acquiring the minority stake in its joint venture HCLT (Illinois) Inc. "Subsequently, some of the company's wholly-owned subsidiaries namely Acquila Technologies, DSL Software Ltd, Shipara Technologies Ltd, HCL Mumbai Ltd, HCLT BPO (India) Ltd and HES India would be merged into HCL Technologies. The merger of these companies would also involve dissolution of some of the holding companies of these subsidiaries," HCLT statement said.

This exercise seeks to rationalise the organisational structure of HCLT and is expected to reduce the number of subsidiaries of HCL by at least 10, it added.

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