HCL Technologies Q2 revenue up 30%, profit up 58%

HCL Technologies second quarter (October-December 2013) revenue rose 30.4 percent to Rs 8,184 crore.

Net profit of HCL Technologies increased 58.4 percent to Rs 1,496 crore, supported by growth in the manufacturing and infrastructure services.

“HCL continues its profitable growth trajectory with yet another stellar quarter of 4 percent QoQ revenues growth and 39.1 percent YoY net income growth,” said HCL Technologies President & CEO Anant Gupta.

HCL Technologies, which follows July-June fiscal year, had reported a net profit of Rs 1,416 crore and revenues of Rs 7,961 crore in the July-September quarter.

The company also crossed many milestones during the quarter, with its CY 2013 revenues crossing the $5 billion landmark. Besides, Infrastructure services, Europe geography and Manufacturing vertical each crossed $1.5 billion in revenues.

HCL

HCL Technologies added 6 clients during the October-December quarter, taking the total clients to 844. Total headcount of the company stood at 88,332 for the period, with gross additions at 7,593 and net at 1,136.

Dipen Shah, head of Private Client Group Research, Kotak Securities, said: “HCLT’s results were higher than expectations, both, on the revenues and margins. Revenues growth of 3 percent in CC terms was a positive surprise in a seasonally weak quarter.”

Margins fell slightly despite salary hikes, due to G&A spend rationalization and improved efficiencies. Utilization levels excluding trainees have remained at about 84 percent in 2Q and it may be difficult to increase the same further.

Kotak Securities, in a research note, suggested that the company needs to improve growth rates in non-IMS businesses to make the overall growth more robust and sustainable. It also needs to implement more levers to sustain and improve margins in the backdrop of high utilization levels and a benign currency.

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