The country’s fourth largest information technology company HCL Technologies on Tuesday reported consolidated net profit of ₹1,683 crore during the third quarter ended March 31, up 3.6 per cent as compared with ₹1,624 crore in the corresponding period last year.

Led by geographical growth in both Europe and the US, and vertical growth such as in financial, public services, and retail and consumer packaged goods, the compan’s revenue also grew year-on-year (YoY).

The company’s revenue also rose 11 per cent YoY to ₹9,267 crore during the last quarter as compare with ₹8,349 crore during January-March 2014. The company follows July-June as its fiscal year.

“This quarter saw our revenue increase by 14.4 per cent YoY in constant currency and we gained significant market share fuelled by transformational deal bookings in excess of $1 billion. These engagements were primarily driven from industries like consumer services, manufacturing and public services and the European region,” Anant Gupta, President and Chief Executive Officer, HCL Technologies, said.

However, the results are not as per street estimations and analysts said that the currency volatility led to drop in margins on sequential basis.

“The revenue came in at - 0.2 per cent QoQ to ₹8,349 crore V/s ₹9,376 crore expected. EBITDA margins came in at 22.5 per cent V/s 25 per cent expected, a dip of 250 basis points QoQ,” Sarabjit Kour Nangra, Vice President (Research – IT) at Angel Broking, said.

However, on the business front, strong client addition in the quarter continued, she said adding that the attrition rate during the quarter inched up to 8.3 per cent against 6.7 per cent in second quarter.

Number of employees also grew during the third quarter to 1,04,184 people as compared to 90,190 people during the third quarter last year, the company said.

HCL Technologies shares were trading at ₹889.05 at the BSE at 3 pm, down 3.69 per cent from previous close.

Related Topics
comment COMMENT NOW