Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsTechnology

HCL Technologies sees 5.7% sequential rise in Q2 net profit to Rs 2,540 crore

Its rupee revenue was up 7.1 percent at Rs 14,861 crore, helped by growth across verticals.

October 23, 2018 / 10:22 PM IST
 (Image: HCL)

(Image: HCL)

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Neha AlawadhiMoneycontrol News

HCL Technologies reported their Q2 FY 19 results on October 23, which were above analysts’ estimates, helped by growth across verticals.

The Noida-based company reported a 5.7 percent sequential rise in the quarter's net profit to Rs 2,540 crore. Its rupee revenue was up 7.1 percent at Rs 14,861 crore.

Analysts polled by Reuters, on average, expected the company to post revenue of Rs 14,701.6 crore and profit of Rs 2,440.3 crore.

India’s third-largest IT services firm maintained its annual revenue growth forecast, and named Roshni Nadar Malhotra as the vice chairman of the board of directors, effective October 22. Malhotra is co-founder Shiv Nadar’s daughter.

HCL Technologies has maintained its annual constant currency revenue growth guidance at 9.5 to 11.5 percent, and chief executive C Vijayakumar said the company expects to meet the mid-point of its own forecast.

“We will continue to see incrementally better growth in the rest of the year. Discretionary spend, especially in the US, is picking up,” Vijayakumar said.

The EBIT margin during the second quarter was 19.9 percent, while HCL continues to expect EBIT margin for the year at 19.5-20.5 percent.

Margin saw a benefit of 90 basis points as a result of rupee depreciation, said Prateek Aggarwal, the new chief financial officer at HCL Technologies.

He added that foreign exchange impact on revenue was 83 basis points, and three percent in constant currency.

HCL, which is betting big on its product and intellectual property-led strategy, also expects that business to do well. The product business, seasonally weak in the September quarter, grew 10.7 percent.

Geographically, business at HCL from the Americas grew 4.4 percent during the quarter, 4.9 percent for rest of the world and fell 0.9 percent in Europe.

Vijayakumar attributed the decline to weakness in a couple of client engagements in financial services. He added that these were likely to continue for the rest of the year.

He said the company scored two large deals in the financial services, one in the US and Europe each .

Employee metrics:

“Our reliance on H-1B (visas) is in the lower hundreds,” said Apparao V V, the chief human resource officer.

HCL further said that 64.7 percent of its workforce in the US was local, as was over 70 percent in Europe.

Indian IT companies have been bracing for a negative impact from the US rethinking its immigration and H-1B visa policy, which is used extensively by software professionals in the labour arbitrage model.

Attrition in the last 12 months was 17.1 percent, and 16 percent during the quarter.

Revenue per employee continued to be among the highest in the industry at $66,000 per employee.

Invite your friends and family to sign up for MC Tech 3, our daily newsletter that breaks down the biggest tech and startup stories of the day

Neha Alawadhi
first published: Oct 23, 2018 10:22 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347