BENGALURU: With strong revenue growth in the software services business, HCL Technologies registered a 14.8 per cent growth in net profit for the quarter ended September 30, 2018. For the July-September quarter, it reported a net profit of Rs 2,534 crore against Rs 2,207 crore it registered in the corresponding period last year.
The strong profit growth of India’s fourth largest IT company follows the performance of Infosys and TCS. India’s third largest IT exporter Wipro will announce its financial performance for the second quarter on Wednesday.
HCL’s revenue from operations stood at Rs 14,860 crore for the second quarter against Rs 12,433 crore it saw a year ago, registering a growth of 19.5 per cent. The revenue from its software services business stood at Rs 8,711 crore against Rs 7,200 crore in Q2FY18.
“We continue to deliver strong and consistent QoQ revenue and margin growth performance. This quarter, we posted 3 per cent revenue growth in constant currency, fuelled by Global Infrastructure Services, Engineering and R&D and Mode-2 next-gen services. Additionally, our Mode-3 revenue continues to accelerate and has achieved the billion-dollar annual run-rate milestone. We remain confident of retaining this growth trajectory going forward,” said C Vijayakumar, president & CEO, HCL Technologies.
HCL retained the revenue guidance for the year ending March 31, 2019, to grow between 9.5 and 11.5 per cent and expect the operating margin (EBIT) to be in the 19.5-20.5 per cent range.
During the quarter, the company witnessed strong deal wins and signed 17 transformational deals reflecting a mix of both software services and IT infrastructure services business led by digital & analytics, cloud native and IoT works, along with infrastructure services, engineering and R&D services, and business services. The Americas region continues to post strong growth at 13 per cent YoY on a constant currency basis, and the firm employs 64 per cent in the US.
“We delivered a robust performance of 10.5 per cent YoY revenue growth in constant currency and EBIT margin at 19.9 per cent, near the mid-point of our guided range ... our net profit has crossed Rs 10,000 crore on run-rate basis,” said Prateek Aggarwal, CFO.HCL has announced a dividend of Rs 2 per share for shareholders.
Promotion
HCL Technologies has elevated Roshni Nadar Malhotra as vice-chairman of its Board of Directors with effect from October 22, 2018.