FY'12: HCL earns revenue of $4 bn

NEW DELHI, INDIA: One of the largest domestic IT players HCL Technologies, while announcing annual results for FY 2012, has said that they have achieved a milestone. Despite economic turbulence, the IT services major posted 17.1 per cent growth over the previous year.

The company has earned revenue of $4,152 million, while its net income rose to $495 million, up by 30.9 per cent YoY. The growth during the current fiscal is fueled by Q4 with Rs 5,919-crore in revenue, which is up by 13.5 per cent QoQ.

Vineet Nayar, CEO and vice chairman of HCL Technologies said that despite GDP challenges, they continue to grow. “Customer satisfaction score is the highest in five years and employee attrition remained low,” he informed.

Our team of 80,000, Nayar said, will continue to deliver. “We are bullish about the growth and will have profitable growth trajectory,” he added. 31 per cent increase in revenues, 54 per cent growth in EBIT and 48 per cent rise in net income he said, establishes industry-leading growth with profitability.

IT services giant is also consolidating its business in the US and Europe. HCL is also optimistic about its BPO segment and said that by 2015, it will come along. Its outsourcing business demonstrated a loss of $5 million this year as compared to $22 million during the previous fiscal.

Technology spend will continue despite macro-economic painpoints, though overall IT spending is flat, believes Nayar. While speaking on growth factors, he said that they have good positioning and have relevant set of technologies, businesses and customers.

HCL Technologies CFO Anil Channa said that they have excellent working capital management. The company has also declared Rs 4 dividend to its shareholders. “It has been an excellent quarter. We have spent $55 million on capex,” Channa said.

The company has established broad-based growth across verticals that include healthcare (22.9 per cent), public sector energy utilities (13.1 per cent) and financial services (5.2 per cent). HCL's infrastructure services grew 9.2 per cent.

Shiv Nadar, chairman and chief strategy officer, HCL Technologies said that with Rs 1300 crore EBITDA in this quarter alone, they have posted Rs 21,031 crores in revenues and Rs 4025 in EBITDA during FY 2012.

Nadar also announced the induction of Srikant M Datar and S Shankar Sastry as HCL's Board of Directors. “With two new directors, I am confident that HCL Technologies will greatly benefit from their unique business insights and global outlook,” he added.