Top 5 takeaways from HCL Technologies Q3 results

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NEW DELHI: HCL Technologies on Tuesday reported better-than-expected earnings for the quarter ended December 31, 2016, along with a marginal improvement top line figures.

Here are the top five takeaways from HCL Tech’s third quarter earnings:

Net Profit: HCL Technologies registered a 2.30 per cent rise in consolidated net profit at Rs 2,062.04 crore for the quarter ended December 31, 2016 against Rs 2,015.60 crore reported for the sequential quarter ended September 30, 2016. Analyats in an ETNow poll had earlier predicted a net profit of Rs 2,019.20 crore for the Oct-Dec period.

The company had reported a net profit of Rs 1,924.75 crore for the corresponding quarter last year.

Revenue from operations: Consolidated revenue from operations jumped 2.56 per cent to Rs 11,814.20 crore for the quarter under review against Rs 11,519.21 crore reported for the previous quarter ended September 31, 2016.

For shareholders: The company declared an interim dividend of Rs 6 per equity share of Rs 2 each (face value) of the company for the financial year 2016-17.

Strong client addition continues: The company added 14 new clients in the basket of $5 million client category, 8 new clients were added in the $10 million category, 13 new clients were added in the $20 million category, 9 new clients were added in the $40 million category, 5 new clients were added in the $50 million category and 1 new clients were added in the $100 million category.

Guidance: The company had guided for FY’17 revenues to grow between 12 per cent to 14 per cent using the average exchange rates for FY’16. This translates to 10 per cent to 12 per cent in dollar terms based on December 31, 2016 exchange rates. “We expect our FY’17 revenues to be in the middle of this range,” HCL Tech said in a release.

The acquisitions and IP led partnerships announced after September 30, 2016 are likely to additionally contribute 0.6 per cent to 1 per cent in revenues depending upon the date of consummation of Geometric deal.