HCL Tech to sign two “mega-deals”

NEW DELHI: HCL Technologies Ltd., India's fifth-ranked software services exporter, said on Wednesday it expects to sign two "mega-deals" this quarter, which would push its annual sales to $1 billion by June.

HCL chairman Shiv Nadar said he expected profit for the year to June 2006 to rise 30 to 40 percent, boosted by increased outsourcing, and he expected the two large deals would each be worth hundreds of millions of dollars.

"We are well on our way to sign at least two mega-deals in this current quarter," Nadar told reporters.

HCL's shares were flat at Rs 579 in a weak Mumbai market.

New Delhi-based HCL, which designs software for customers such as Deutsche Bank and Boeing, said its October-December consolidated net income based on U.S. accounting standards rose 40 percent to Rs 1.81 billion ($41 million) from Rs 1.29 billion in the same period a year ago.

Gross revenue rose 31.5 percent to Rs 10.54 billion.

"Key financial matrix have started accelerating, which augurs well for the rest of the year," said S.L. Narayanan, HCL's vice-president.

HCL is a leading player in India's software services sector, which expects to see exports surge by more than 25 percent a year to $60 billion by 2010. A growing number of companies are looking to tap India's pool of low-cost, English-speaking engineers.