HCL Tech Q1 net profit up 10 pc to Rs 2,431 cr; becomes India's third-largest IT firm

IT firm HCL Technologies today reported a 10 per cent rise in consolidated net profit at Rs 2,431 crore for the June quarter and toppled Wipro to become India's third-largest IT firm in terms of dollar revenue.

The Noida-based company, which had posted a net profit of Rs 2,210 crore in the year-ago period (as per Indian Accounting Standards), saw its revenues growing 14.2 per cent to Rs 13,878 crore in April-June 2018.

In dollar terms, HCL Tech's net profit rose 5.7 per cent to USD 356 million in the reported quarter, while revenues grew 9 per cent to USD 2.05 billion.

With this, HCL Technologies has overtaken Wipro to become India's third-largest Indian IT services firm. Wipro's IT services revenues stood at USD 2.02 billion in the June 2018 quarter.

Tata Consultancy Services and Infosys are the two larger Indian IT services firms with revenues of USD 5.05 billion and USD 2.83 billion, respectively, in the June 2018 quarter.

HCL Technologies expects its FY19 revenues to grow between 9.5 per cent to 11.5 per cent in constant currency. Its revenue forecast, in dollar terms, is a growth of 8.4 per cent to 10.4 per cent in FY2018-19.

"We achieved highest ever bookings in this quarter led by our next-gen Infrastructure services as well as Mode 2 offerings. Our combined Mode 2 and 3 offerings contributed 26.6 per cent of our revenues and it grew 9.6 per cent quarter-on-quarter," HCL Technologies President and CEO C Vijayakumar said.

The company will continue to invest in its next-generation portfolio to help enterprises build their digital future, he added.

The company said it signed 27 transformational deals during the quarter, led by strong momentum in telecom, financial services, retail - CPG and energy and utilities verticals.

It saw broad-based growth driven by Technology and Services (36 per cent), Lifesciences and Healthcare (10.2 per cent), Financial Services (9 per cent) and Retail and CPG (7 per cent) on LTM (last twelve months) constant currency basis.

Total headcount stood at 124,121 at the end of June 2018. The attrition for IT services on LTM basis stood at 16.3 per cent. The company has announced a dividend of Rs 2 per share.

The company had also announced a Rs 4,000 crore buyback programme for FY19 at a price of Rs 1,100 per equity share.

"We have announced buyback recently and this buyback is part of the company's strategy to return more than 50 per cent of the company's net income to the shareholders. The price has been fixed at Rs 1,100," Anil Chanana, CFO of HCL Technologies, said.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)