HCL Tech net up 13%, IT major betters revenue guidance

Revenue for FY20 to grow 16.5%-17% in constant currency

HCL Technologies on Friday posted a 13% increase in its consolidated net profit at ₹2,944 crore for the quarter ended December 2019, while revising upwards its revenue growth forecast on the back of optimism on demand environment.

The company, which had registered a net profit of ₹2,605 crore in the October-December 2018 quarter as per Indian Accounting Standards, said its revenue from operations grew 15.5% to ₹18,135 crore from ₹15,699 crore in the year-ago period.

“... this quarter we have crossed an annualised run rate of $10 billion. Our pipeline stands at an all-time high, we are expecting a higher conversion of this pipeline to booking in this quarter,” HCL Technologies president and CEO C. Vijayakumar said.

The company said it now expects revenue for the current fiscal to grow in the range of 16.5%-17% in constant currency as against a forecast of 15%-17% earlier.

“At the year-to-date mark, we are at about 17.8%. We had earlier guided to a wider range of about 15-17%, but now that we have only one quarter to go and we have better visibility, we have narrowed down the range,” the company’s CFO Prateek Aggarwal explained.

Talking about the deal pipeline, the CEO said, “The best way we define demand environment is really to look at our pipeline. Our pipeline is at historic peak so I am very optimistic about the overall demand environment.”

HCL Technologies’ board has declared a dividend of ₹2 per share. The results came in after market hours. The company scrip on Friday closed at ₹598.8 per share, up marginally from their previous close on the BSE. Mr. Vijayakumar said on a year-year basis, five of the seven verticals posted double-digit growth, while life sciences and healthcare delivered a high-single digit y-o-y growth. He added that the growth in the quarter was led by manufacturing at 38.1% growth y-o-y, energy, utility and public services at 31.3% growth, retail CPG at 16.9% growth, financial services at 16.8% growth, and telecom and media at 13.6% growthIn terms of geographies, U.S., Europe and Rest of World saw double-digit growth on a y-o-y basis in constant currency, with RoW leading the growth with 27.3% y-o-y increase. In dollar terms, the net profit grew 17.2% to $426.5 million for the December 2019 quarter, while revenue surged by 15.5% to $2.5 billion as compared to the year-ago period, as per the US Generally Accepted Accounting Principles. The company added 11,502 employees (gross) during the quarter to take its total head count to 1,49,173 at the end of the December 2019 quarter. Attrition on the last 12-month basis stood at 16.8%.

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Printable version | Feb 18, 2020 10:10:41 AM |

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