HCL Technologies Q4 profit rises to Rs2,227 crore

HCL Tech gets board nod for ₹4,000 crore share buyback

New Delhi: Noida-based IT major HCL Technologies Ltd on Wednesday reported a consolidated net profit at Rs2,227 crore for the fourth quarter ended 31 March, up 1.5% from the December quarter.

For the same quarter, the company’s revenues stood at Rs50,570 crores, up 2.9% from the previous quarter and 8.2% from the year-ago quarter.

At 12.47pm, HCL shares were down 4.32% to Rs1,006 on BSE, while the Sensex was up 0.17% to 35,210.98 points.

HCL signed 15 transformational deals this quarter, with several of them representing next generation offerings of autonomics and artificial intelligence, digital and analytics, internet of things, cloud native services and cybersecurity. A total of 63 transformational deals have been signed during the year.

“We conclude the fourth quarter and the financial year 2018 with an industry-leading performance backed by broad-based growth across verticals, robust client additions and accelerated revenues from Mode 2 and 3 Services. We remain confident of the new Fiscal in light of the increasing relevance of our business offerings coupled with our strategic investments in technologies of the future”, said C.Vijayakumar, President & CEO, HCL Technologies Ltd in a press statement.

In the statement, the company said that annual revenues crossed the Rs50,000-crore mark, while quarterly revenues exceeded the $2 billion milestone. There was broad based growth across verticals driven by Manufacturing at 18.3%, Financial Services at 13.3%, Lifesciences & Healthcare at 8.1% , Retail & CPG at 7.5% and Public Services at 2.6% (on constant currency basis).

The IT major expects FY19 revenues to grow between 9.5% to 11.5% in constant currency terms.The revenue guidance is based on FY18 (April to March) average exchange rates. The above constant currency guidance translates to 10.5% to 12.5% in dollar terms based on 31 March 31 rates.

According to Nitin Padmanabhan, an analyst with Investec Capital Services, “The recent acquisitions Actian Corp and c3i put together will contribute 300 bps to growth. In light of this the revenue and margin guidance appears to be weak.”

The company said that revenues from Digital & Analytics and Products & Platforms offerings together grew 41.5% in the 12 months period ending March 2018. The share of Digital & Analytics and Products & Platforms revenues together stands at 23.4% for FY18, compared to 18.6% for FY17.

Padmanabhan adds, “The growth in revenues was largely driven by Infrastructure management and engineering and R&D business which contributed 61% and 20% to the incremental revenues respectively. It’s important to understand incremental revenues from new IP acquisitions that could have contributed to this growth. HCLT invested $46.5 million in IPs for the 8th straight quarter.”livemint