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Noida-based software services firm HCL Technologies on Monday reported a 2.8 per cent decline in its consolidated net profit at ₹1,783 crore for the fourth quarter ended June 30 against ₹1,834 crore in the corresponding quarter last year.
The company, which follows July-June as its financial year, said the fall in net profit was on account of higher selling, general and administrative expenses.
However, consolidated revenues for the quarter rose to ₹9,777 crore, up 16 per cent against ₹8,424 crore in April-June 2014, the company said.
Verticals growing “All our verticals posted strong double-digit performance in fiscal 2015 and industry leading growth in the US and Europe with 14 per cent and 18.7 per cent in last 12 months year-on-year constant currency growth, respectively,” Anant Gupta, President and Chief Executive Officer, HCL Technologies, said.
The company signed 58 deals with more than $5 billion of total contract value during the year, he said.
“We have invested in delivery and co-innovation centres as well as roped in 100 senior leaders,” Gupta said.
According to analysts, HCL Technologies’ results were lower than the expectations. “HCL Tech’s results were lower than our expectations, both on the revenues and margins front. There was a significant miss on the margin front. The relatively higher utilisation rates coupled with the need to increase sales, marketing investments and investing in emerging businesses may continue to impact profitability in the short term,” Dipen Shah, Head of Private Client Group Research, Kotak Securities, said.
The company recorded a total headcount at 1,06,107 employees as of June 30. The utilisation rate stood at 83.5 per cent in the quarter, it said.
Hiring target Meanwhile, HCL Technologies said it will hire more locals at its on-site locations.
“We have about 21.7 per cent people onsite. It is our stated goal to take it higher to 25 per cent by the end of this fiscal (June 2016). We will source the right people for the right job,” Gupta added.
The company’s shares closed at ₹937.40 on the BSE on Monday, down 5.94 per cent from the previous close.
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