Top five takeaways from HCL Technologies Q1 results


NEW DELHI: HCL Technologies surpassed Street estimates and reported 14.8 per cent year-on-year (YoY) growth and 6.3 per cent quarter-on-quarter (QoQ) growth in June quarter net profit at Rs 2,047 crore, which was higher than a Rs 1,892.70 crore projection that analysts had made in the ETNow poll.

India’s fourth largest IT exporter had reported a net profit of Rs 1,926 crore in the previous quarter. It reported total revenues of Rs 11,336 crore, up 6 per cent QoQ and 15.9 per cent on a year-on-year (YoY) basis.

Here are the top five takeaways from HCL Technologies June quarter results:

Dollar revenue: The IT firm reported a 6.5 per cent QoQ and 10 per cent YoY growth in dollar revenues at $1691 million. Net profit rose 7.1 per cent QoQ and 9.5 per cent on a YoY basis to $305 million.

FY17 guidance: HCL Technologies surprised the Street and analysts by giving a guidance for this financial year. On the revenue front, HCL management expects FY17 revenue growth to rise between 12 per cent and 14 per cent in constant currency terms.

The above constant currency guidance translates into 11.2 per cent to 13.2 per cent growth in dollar revenue terms based on June 30 2016 rates.

Dividend: HCL Technologies has informed BSE that the board of directors of the company at its meeting held on August 03 declared an interim dividend of Rs 6 per equity share of Rs 2 each of the company for the financial year 2016-17.

The payment date of the said interim Dividend shall be August 19, 2016.

Deal wins: HCL Tech signed 13 transformational deals during quarter across service lines and industry verticals. The broad-based business wins were driven by next generation integrated offerings such as Next-Gen ITO, BEYONDigital and IoT WoRKS, reflecting investments in Internet of Things, digital technologies, cloud, automation and artificial intelligence.

Growth across geographies: HCL Technologies revenues grew 10.7 per cent. The fourth largest IT exporter saw broad-based growth across all revenue segments. America and Europe grew by 13.7 per cent and 10.6 per cent respectively, driven by Infrastructure Services at 18.0 per cent, Engineering and R&D Services at 10.4 per cent, Business Services at 10.1 per cent, and Application Services at 4.7 per cent.

Vertical growth was led by public services at 24.7 per cent, lifesciences & healthcare at 21.5 per cent, telecommunications, media, publishing and entertainment at 17.8 per cent, retail & CPG at 14.9 per cent, manufacturing at 7.7 per cent and financial services at 5.7 per cent.