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Noida-based HCL Technologies Ltd on Wednesday reported an increase of 0.8% in net profit quarter-on-quarter (q-o-q) at Rs2,188 crore and 8.6% rise year-on-year (y-o-y) for the September quarter.

The company had posted a net profit of Rs2,171 crore in the June quarter.

Revenue in constant currency terms was up by 0.9% q-o-q and 10.6% y-o-y.

“This quarter marks the end of H1 of FY18 which has seen us deliver a strong broad–based growth across businesses. This growth trajectory is a result of the momentum our Mode 2 and Mode 3 services have created in the market even as our Mode 1 services continue to punch their weight. Our mature verticals like manufacturing and financial services, which together contribute to 60% of our revenues, grew at 21.9% and 14.2% respectively, quarterly y-o-y. Our Top 20 customers have grown faster than the company average, reflecting the strong performance of our Client Partner program,” said C.Vijayakumar, president and chief executive officer, HCL Technologies.

The company reported broad-based growth across verticals driven by manufacturing at 22.3%, financial services at 15.4%, public services at 14.5%, retail and consumer packaged goods at 9.2% and lifesciences and healthcare at 7.4%, in constant currency.The growth was driven by engineering and research and development services at 28.2%, infrastructure services at 17.0% and application services at 6.8%.

The company also reported strong client addition (on y-o-y basis).During the quarter, HCL signed 15 transformational deals. The deal wins were led by the verticals of insurance, healthcare, telecommunications, public services, hitech and manufacturing. HCL also expanded its relationship with IBM to collaboration solutions, including Notes, Domino, Smart Cloud Notes, Verse and Sametime, with an objective to provide superior business value and support to the larger customer base.

The IT major expects FY18 revenues to grow between 10.5% and 12.5% in constant currency terms. The revenue guidance is based on FY17 (April to March) average exchange rates. The above constant currency guidance translates to 12.1% to 14.1% in dollar terms based on 30 September rates.

“We continue to deliver value for our stakeholders. Our revenues this quarter grew 11.9% y-o-y in reported terms, while our net Income increased by 12.6% y-o-y. This is reflected in higher earnings per share at Rs62.7 which is up 10% y-o-y. Cash generation continues to be robust with our net income to operating cash flow conversion in the last 12 months at ~96%. Our investment in Mode 2 and Mode 3 services continues to be supported by higher return on equity (ROE) at 28%,” said Anil Chanana, chief financial officer, HCL Technologies.

Last modified on Wednesday, 25 October 2017

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