HCL Tech profit rises 6% to ₹2,194 crore

Our Bureau New Delhi | Updated on January 19, 2018

Next-gen offerings help company post higher revenue during the third quarter

The country’s fourth largest information technology firm HCL Technologies has reported a consolidated net profit of ₹2,194 crore for the third quarter ended December 31, 2017, up 6 per cent as compared with ₹2,070 crore in the year-ago period.

Revenue of the company also rose 8.4 per cent to ₹12,808 crore during the quarter from ₹11,814 crore in the October-December 2016, as per US GAAP accounting norms, the company said.

“We finished last quarter on a strong note, with a growth of 3.3 per cent sequentially and 11.2 per cent year on year in constant currency terms. Our Mode 1–2–3 strategy and success of our client-partner programme for top accounts, continued to drive industry leading growth,” C Vijayakumar, President and Chief Executive Officer, HCL Technologies, said.

Over 25 per cent of the revenues in the said quarter came from Mode 2 and Mode 3 services, which strongly validates the success of our next–gen offerings in the market, he said, adding that “This was a strong quarter in terms of deal signings where we signed 20 transformational deals across services.”

The company added 251 people during the quarter, taking total headcount to 1,19,291. Attrition in IT services (last 12 months basis) stood at 15.2 per cent, the company said.

Revenues from Americas grew at 16.6 per cent in the reported quarter from the year-ago period, while that from Europe and Rest of World were higher by 2.5 per cent in constant currency terms. Financial services witnessed a 10.6 per cent growth on yearly basis, manufacturing 21 per cent, life-sciences and healthcare 9.7 per cent, and retail and CPG at 13.1 per cent.

Public services vertical grew marginally, while revenues from telecommunications, media, publishing and entertainment declined by 6.8 per cent.

Meanwhile, HCL Technologies has announced a dividend of ₹2 per share.

Shares of the company closed at ₹957.75 on the BSE on Friday, up 0.30 per cent from the previous close.

Published on January 19, 2018

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