New Delhi, Oct. 17: IT services firm HCL Technologies today reported a better-than-expected performance by posting a 63.8 per cent increase in consolidated net profit for the quarter ended September 30, 2013, aided by a weak rupee and encouraging macro-economic trends.
Net profit of the country’s fourth-largest software services exporter rose to Rs 1,416 crore in the first quarter from Rs 864 crore in the year-ago period.
Consolidated revenues grew 31.2 per cent to Rs 7,961 crore during the July-September quarter from Rs 6,069 crore in the same period of the last fiscal.
The company follows the July-June fiscal calendar.
HCL Technologies chairman and chief strategy officer Shiv Nadar said: “Against the backdrop of encouraging macro-economic trends, these results cement HCL’s position as a company with a strong and differentiated business model.”
However, market analysts said investors were disappointed as sequentially the Noida-based company’s revenue was below expect- ations compared with rivals TCS and Infosys.
TCS’s sequential revenue growth of 5.4 per cent in dollar terms and Infosys’s 3.8 per cent were better than HCL’s 3.5 per cent quarter-on-quarter growth.
The HCL scrip fell 6.6 per cent to Rs 1,083.15 on the BSE today.
In dollar terms, net profits rose 42.8 per cent to $225.6 million in the quarter against $158 million in the year-ago period. Revenues rose 14.1 per cent to $1.27 billion during the period from $1.11 billion in the same quarter last fiscal.
“HCL continues to strengthen its position in the momentum markets of the industry with Europe crossing a milestone run rate of $1.5 billion, reflecting a 23.6 per cent growth year-on-year,” president and CEO Anant Gupta said.