HCL Technologies on Thursday reported a 64 per cent increase in consolidated net profit during the first quarter ended September 30, riding on increased demand for IT services from key global markets. The rupee’s depreciation also helped improve margins.
The company said net profit touched Rs 1,416 crore during the July-September quarter, compared with Rs 864 crore in the same period last year. The company follows June-July financial year. The company announced a dividend of Rs 2 a share for the 43rd consecutive quarter. HCL’s revenues from the US jumped 57 per cent and that from Europe grew 30.2 per cent during the quarter. However, growth from the rest of the world declined to 12.6 per cent, compared with 15 per cent in July-September 2012. In terms of business verticals, the growth was led by financial services and manufacturing, life-sciences and healthcare, and public services. The company has cash equivalents of $96.8 million compared with $123.3 million at the end of June. Anil Chanana, Chief Financial Officer, said the company would consolidate its facilities across multiple locations to free up around 31,000 seats in a bid to create operational efficiencies. He said the consolidation would happen in Noida, Bangalore and Chennai. The company is expanding its near-shore operations in Mexico to cater to clients in the US, he added. The company has 87,196 employees compared with 85,335 headcounts in the same period last year. HCL Tech’s shares closed at Rs 1,083.15 on the BSE on Thursday, down 6.66 per cent from the previous close.