HCL Tech Q2 PAT jumps 16.7%; constant currency guidance remains at 12-14%


NEW DELHI: HCL Technologies on Friday reported 16.7 per cent year-on-year (YoY) growth in net profit at Rs 2,014 crore for the quarter ended September 30, which was above estimates of Rs 1,968.50 crore that some analysts had projected in an ETNow poll.

However, on a quarter-on-quarter (QoQ) basis, net profit slipped 1.6 per cent. HCL Technologies maintained constant currency guidance at 12-14 per cent for FY17.

Total revenues rose 14.1 per cent on a YoY basis to Rs 11,519 crore. However, on a QoQ basis, there was a marginal rise of 1.6 per cent, HCL Technologies said in the release.

The company informed BSE that C Vijayakumar, Chief Operating Officer, has been elevated to the position of the President and Chief Executive Officer with effect from October 20, 2016.

The company also said it has entered an agreement to acquire Butler America Aerospace, (Butler Aerospace), a provider of engineering, design services, and aftermarket engineering services to US aerospace and defence customers.

“HCL continues to be the partner of choice for the 21 Century Enterprise through our differentiated strategy encompassing core services, integrated next-generation offerings and platforms, in-line with our Mode 1-2-3 growth strategy,” C Vijayakumar, President & CEO, HCL Technologies, said.

“This has helped us deliver a strong growth of 2.8 per cent QoQ and 12.8 per cent YoY this quarter in constant currency terms on the back of strong Q1 FY’17 performance of 6 per ceny QoQ growth in constant currency,” he said.

Broad-based growth was seen across verticals driven by public services at 25 per cent, retail & CPG at 21.6 per cent, Lifesciences & Healthcare at 15.9 per cent, Telecommunications, Media, Publishing & Entertainment at 14.9 per cent, Manufacturing at 7.1 per cent, and Financial Services at 5.3 per cent (LTM YoY on Constant Currency basis).

HCL Technologies strong client addition continued during the quarter. The IT major added $1 million-plus clients up by 8, $10 million-plus clients up by 13, $20 million- plus clients up by 7, $40 million-plus clients up by 10, $50 million-plus clients up by 2, and $100 million – plus clients up by 1 (on YoY basis).

HCL and BM extended their strategic IP-partnership to cover API and web service enablement for mainframes. The company will be investing $55 million in this partnership