Wednesday, April 20, 2011

HCL Tech Q3 numbers beat analyst estimates; margins gain

Software services firm HCL Technologies' third quarter (January-March) numbers beat analysts estimates by a comfortable margin, and could revive sentiment for the sector, which saw a sell-off last week following disappointing quarterly performance and muted guidance from bellwether Infosys Technologies.

HCL Technologies reported quarterly revenues of Rs 4138 crore (CNBC-TV18 poll: Rs 4090 crore), earnings before interest, taxes, depreciation and amortisation of Rs 716.6 crore (poll: Rs 699 crore), and a net profit of Rs 468.2 (poll: Rs 430 crore).


Revenues were up 6.4% quarter-on-quarter, EBIDTA 12.9% and net profit, 17.1%.

EBDTA margin for the quarter was 17.3%, up 100 basis points q-o-q, but down 240 basis points compared to the same quarter last year. EBIT margin rose 130 basis points to 14.4% sequentially, and was down 180 basis year-on-year.

“We continue to expand market share backed by a second sequential quarter of revenue growth of 30%+ YoY along with expansion in margins,” said Vineet Nayar, Vice Chairman and CEO, HCL Technologies, adding, “HCL’s focus on forward investment in key markets and transformation services is paying rich dividends.”

Consolidated IT services (software services and infrastructure services), which account for 95% of the company’s revenues, grew 6.7% sequentially and 35.2% year-on-year to Rs 3912 crore. The BPO services segment fared poorly, with revenues falling 5.5% y-o-y, and rising 1.2% sequentially. The segment reported a loss of Rs 20.4 crore before interest and taxes.

The company said it signed 11 “transformational deals” this quarter across service lines, verticals and geographies, 8 of which were won from existing customers.

The company net added 1153 employees during the quarter, taking the total head count to 73,420. HCL Tech announced a dividend of Rs 2 per share.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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