New Delhi, Aug. 30 (PTI): HCL Technologies today posted an 11 per cent drop in its net profit for the fiscal ended June 30, to Rs 425.32 crore against Rs 480.12 crore in the last fiscal.
“Extraordinary provisioning of Rs 61.2 crore towards bad debts and diminishing returns on our previous investments as venture capital in high-tech start-ups forced us to take the hit,” S. L. Narayan, corporate vice-president, finance, HCL Technologies told newspersons here.
For the fourth quarter ended June 30, the company clocked a 48 per cent fall in the net profit to Rs 68.98 crore against Rs 132.43 crore during the same period last fiscal.
The drop in the fourth quarter net profit is due to the extra-ordinary provisioning of Rs 36.73 crore due to restructuring in the debt mutual fund portfolio investments, Narayan said.
The move to restructure was necessitated as the 2002-03 budget taxed dividend income from mutual funds at the hands of investors.
“The results are up to our expectations,” chairman Shiv Nadar said.
Both the results were based on US generally accepted accounting practices (GAAP).