HCL Technologies net profit up 14.4%; highest growth in four years

New Delhi: HCL Technologies Ltd on Thursday announced net profit growth of 14.4% year-on-year (y-o-y), its highest growth in four years, at Rs.1,926 crore, for the quarter ended 31 March. On quarter-on-quarter basis, the company’s net profit increased by 0.3%.

The company follows the June-July fiscal.

The Noida-based company posted a revenue of Rs.10,698 crore, up 3.4% from the quarter ending December and 15.4% y-o-y. In constant currency terms, revenue grew 1.7% on-quarter and 8.1% y-o-y.

At 9.52am, the HCL Technologies stock was trading at Rs.816.45 on the BSE, down 2.54% from previous close, even as India’s benchmark Sensex index fell 0.03% to 26,057.44 points.

“Healthy cash generation in the last 12 months is reflected in 97% of the net income getting converted to operating cash flow. We have pursued a well-balanced capital allocation strategy through a combination of capital expenditure, dividends and acquisitions. Return on equity for the year continues to be robust at 28%,” said Anil Chanana, chief financial officer, HCL Technologies.

HCL signed seven transformational deals this quarter with total contract value (TCV) of more than $2 billion, taking the number of transformational engagements during the nine-month financial year to 25, with TCV of more than $4 billion, said a company statement issued on Thursday.

“Our investments in BEYONDigital, IoT WoRKS and Next-Gen IT outsourcing helped us close FY16 year with a robust growth of 11.6% y-o-y in constant currency… We have significantly enhanced our strengths in new age services and domain leadership through strategic client acquisitions,” said Anant Gupta, president and chief executive officer, HCL Technologies Ltd.

BEYONDigital facilitates digital transformation for enterprises, enabling front-to-back digitalization, driving significant user experience and transforming business operations to drive growth and efficiencies for clients.

IoT WoRKS offers end-to-end services, leveraging its capabilities to define, build and run IoT (Internet of things) ecosystems globally.