HCL Tech Q3 net tops estimate at Rs 468.2 cr

MUMBAI, INDIA: Indian software services major HCL Technologies today announced its results for third quarter that ended on March 31, 2011.

The company reported a 33 per cent Y-o-Y jump in net income to Rs 468.2 crore for the third quarter ended March 31, 2011, compared to the net income of Rs 350.3 crore in the January-March quarter last fiscal.

The consolidated revenue of the company grew by 32 per cent Y-o-Y to Rs 4,138 crore in the March quarter from Rs 3,132 crore in the year-ago period, the release added.

On a sequential basis, the company reported a 17 p.c growth in net income and 6.4 per cent jump in revenue during the recently concluded quarter.

Shares of the company, which the market values at $7.34 billion, rose as much as 9.8 percent to a 11-year high of 522.35 rupees, in a Mumbai market that was up 0.77 percent. The BSE IT index was up 1.6 percent.

HCL also announced an interim dividend of Rs. 2 per share. This is the 33rd consecutive quarter of dividend payout.

While the company's gross employee addition was at 7,534, the net addition was 1,153 respectively, taking total headcount to 73,420.

“The recent global uncertainties and natural calamities have reinforced the need for sustainable and humanitarian approach to business,” said Shiv Nadar, Founder, HCL and Chairman, HCL Technologies and Shiv Nadar Foundation. “We at HCL continue to stay committed towards ensuring that human welfare and public good always remain the top priority in our organizational and business pursuits,” he added.

Commenting on the results, Vineet Nayar, Vice Chairman and CEO, HCL Technologies said, “We continue to expand market share backed by a second sequential quarter of revenue growth of over 30 per cent YoY along with expansion in margins. HCL’s focus on forward investment in key markets and transformation services is paying rich dividends.”

Added Anil Chanana, CFO, HCL Technologies, “Impressive sequential revenue growth at 5.8 per cent, 130 bps improvement in operating margin and net income to operating cash conversion at 114 per cent are the key highlights of HCL’s performance this quarter.”

He said the EPS growth of 34 per cent over the last one year in line with the revenue growth firmly demonstrates strength of HCL’s business model.

The company said it signed 11 “transformational deals” this quarter across service lines, verticals and geographies, 8 of which were won from existing customers.