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HCL Tech Q4 Net Jumps 53.7%; Sees Strong Growth Ahead #Press #Media #BusinessStandard

Buoyed by strong growth in application and infrastructure services, India’s fourth largest IT solutions firm HCL Technologies Thursday reported a 53.7 per cent surge in its consolidated net profit to Rs 1,834 crore for the fourth quarter ended June 30, 2014.

The company, which follows a July-June quarter, had posted a net profit of Rs 1,193 crore in the year-ago period. Consolidated revenues of the Noida-based firm rose 20.7 per cent to Rs 8,424 crore in the April-June quarter as against Rs 6,980 crore in the same period last year.

“The traction in application and infrastructure services has been strong. It was a strong year for us, we crossed the USD 5 billion revenue milestone and have further evolved the key building blocks to deliver next generation propositions to customers,” HCL Technologies CEO Anant Gupta told reporters.

He added that backed by the solid performance, HCL Technologies remains confident in its ability to continue delivering industry leading growth.

In US dollar terms, HCL Technologies reported a 44.2 per cent rise in net profit for the June quarter to USD 305.4 million, while revenues rose 14.6 per cent to USD 1.4 billion.

Application services revenue grew 7.9 per cent year-on -year in dollar terms, while that from infrastructure services moved up 25.6 per cent for the June 2014 quarter compared to the same period last year.

“HCL Technologies Q4 FY14 results were above our estimates on all front. We like the company’s performance in software vertical. However, ability to maintain its margin post software vertical revenue expansion remains the watchable going-ahead,” Research IndiaNivesh Securities Head Daljeet S Kohli said.

For the full year ended June 30, 2014, its net profit moved up 58.3 per cent to Rs 6,369 crore as against Rs 4,023 crore in the previous fiscal. Revenues rose 27.8 per cent to Rs 32,917 crore during the year as compared with Rs 25,758 crore in FY 2012-13.

HCL said it has signed over 50 transformational engagements with more than USD 5-billion Total Contract Value (TCV) during FY 2013-14.

The company’s scrip was trading at Rs 1553.60 apiece in late afternoon trade, 2.74 per cent below yesterday’s close on the BSE.

“While the broad numbers look healthy and the HCL Tech management looks happy on the outside, the investors are questioning the lopsided growth, i.e heavy reliance on few pillars like infrastructure management services, chosen verticals and geographies,” Greyhound Research CEO and Chief Analyst Sanchit Vir Gogia said.

Talking about growth in quarter ahead, Gupta said there are significant opportunities in the European region as well as in the US market.

“Our pipeline is stronger today than it was at the same time last year. Europe has significant opportunities and there is huge potential in the US too. In RoW, Australia is witnessing good traction,” he added.

Americas accounted for 57 per cent of the company’s revenues, followed by Europe at 30.5 per cent and Rest of World (RoW) at 12.5 per cent.

The firm said it added one client in USD 100-million plus (deal size) category, four clients in the over USD 50-million and 16 clients in more than USD 20 million segment.

Gupta said the company is witnessing good demand for digital services as well as engineering and R&D services.

“We are increasing our focus on security as cyber threats are on the rise and enterprises are concerned. Security will have a big role to play as Big Data grows and the ecosystem of Internet of Things and Machine to Machine communication grows further,” he said.

The firm added 8,442 people (gross) and 1,501 people (net) during the quarter to take its total headcount to 91,691. Its rate of attrition remained unchanged at 16.9 per cent.

Asked about wage hikes, Gupta said onsite employees will be given an increment of 3 per cent, while offshore ones will get 7 per cent increase.

“Our promotion cycle is staggered and begins this month. We expect the total impact of hikes to be about 180 basis points,” he added.

HCL’s cash and cash equivalents, investments and borrowings at the end of June 2014 stood at Rs 1,020.6 crore. “The superior operating performance has been accompanied by efficient working capital management including DSO (days sales outstanding), high conversion of profits into cash and return on equity at historic high of 36 per cent,” HCL Technologies CFO Anil Chanana said.

He added that the company will invest 3-3.5 per cent of its revenue on capital expenditure to upgrade and expand delivery centres and other operational requirements. The company announced dividend of Rs 12 per share, its 46th consecutive quarter of dividend payout.

Source: Business Standard

HCL Tech Q4 Net Jumps 53.7%; Sees Strong Growth Ahead #Press #Media #NewIndianExpress

Buoyed by strong growth in application and infrastructure services, India’s fourth largest IT solutions firm HCL Technologies Thursday reported a 53.7 per cent surge in its consolidated net profit to Rs 1,834 crore for the fourth quarter ended June 30, 2014.

The company, which follows a July-June quarter, had posted a net profit of Rs 1,193 crore in the year-ago period. Consolidated revenues of the Noida-based firm rose 20.7 per cent to Rs 8,424 crore in the April-June quarter as against Rs 6,980 crore in the same period last year.

“The traction in application and infrastructure services has been strong. It was a strong year for us, we crossed the USD 5 billion revenue milestone and have further evolved the key building blocks to deliver next generation propositions to customers,” HCL Technologies CEO Anant Gupta told reporters.

He added that backed by the solid performance, HCL Technologies remains confident in its ability to continue delivering industry leading growth.

In US dollar terms, HCL Technologies reported a 44.2 per cent rise in net profit for the June quarter to USD 305.4 million, while revenues rose 14.6 per cent to USD 1.4 billion.

Application services revenue grew 7.9 per cent year-on -year in dollar terms, while that from infrastructure services moved up 25.6 per cent for the June 2014 quarter compared to the same period last year.

“HCL Technologies Q4 FY14 results were above our estimates on all front. We like the company’s performance in software vertical. However, ability to maintain its margin post software vertical revenue expansion remains the watchable going-ahead,” Research IndiaNivesh Securities Head Daljeet S Kohli said.

For the full year ended June 30, 2014, its net profit moved up 58.3 per cent to Rs 6,369 crore as against Rs 4,023 crore in the previous fiscal. Revenues rose 27.8 per cent to Rs 32,917 crore during the year as compared with Rs 25,758 crore in FY 2012-13.

HCL said it has signed over 50 transformational engagements with more than USD 5-billion Total Contract Value (TCV) during FY 2013-14.

The company’s scrip was trading at Rs 1553.60 apiece in late afternoon trade, 2.74 per cent below yesterday’s close on the BSE.

“While the broad numbers look healthy and the HCL Tech management looks happy on the outside, the investors are questioning the lopsided growth, i.e heavy reliance on few pillars like infrastructure management services, chosen verticals and geographies,” Greyhound Research CEO and Chief Analyst Sanchit Vir Gogia said.

Talking about growth in quarter ahead, Gupta said there are significant opportunities in the European region as well as in the US market.

“Our pipeline is stronger today than it was at the same time last year. Europe has significant opportunities and there is huge potential in the US too. In RoW, Australia is witnessing good traction,” he added.

Americas accounted for 57 per cent of the company’s revenues, followed by Europe at 30.5 per cent and Rest of World (RoW) at 12.5 per cent.

The firm said it added one client in USD 100-million plus (deal size) category, four clients in the over USD 50-million and 16 clients in more than USD 20 million segment.

Gupta said the company is witnessing good demand for digital services as well as engineering and R&D services.

“We are increasing our focus on security as cyber threats are on the rise and enterprises are concerned. Security will have a big role to play as Big Data grows and the ecosystem of Internet of Things and Machine to Machine communication grows further,” he said.

The firm added 8,442 people (gross) and 1,501 people (net) during the quarter to take its total headcount to 91,691. Its rate of attrition remained unchanged at 16.9 per cent.

Asked about wage hikes, Gupta said onsite employees will be given an increment of 3 per cent, while offshore ones will get 7 per cent increase.

“Our promotion cycle is staggered and begins this month. We expect the total impact of hikes to be about 180 basis points,” he added.

HCL’s cash and cash equivalents, investments and borrowings at the end of June 2014 stood at Rs 1,020.6 crore. “The superior operating performance has been accompanied by efficient working capital management including DSO (days sales outstanding), high conversion of profits into cash and return on equity at historic high of 36 per cent,” HCL Technologies CFO Anil Chanana said.

He added that the company will invest 3-3.5 per cent of its revenue on capital expenditure to upgrade and expand delivery centres and other operational requirements. The company announced dividend of Rs 12 per share, its 46th consecutive quarter of dividend payout.

Source: The New Indian Express

HCL Tech Q4 Net Jumps 53.7%; Sees Strong Growth Ahead #Press #Media #PTI

Buoyed by strong growth in application and infrastructure services, India’s fourth largest IT solutions firm HCL Technologies Thursday reported a 53.7 per cent surge in its consolidated net profit to Rs 1,834 crore for the fourth quarter ended June 30, 2014.

The company, which follows a July-June quarter, had posted a net profit of Rs 1,193 crore in the year-ago period. Consolidated revenues of the Noida-based firm rose 20.7 per cent to Rs 8,424 crore in the April-June quarter as against Rs 6,980 crore in the same period last year.

“The traction in application and infrastructure services has been strong. It was a strong year for us, we crossed the USD 5 billion revenue milestone and have further evolved the key building blocks to deliver next generation propositions to customers,” HCL Technologies CEO Anant Gupta told reporters.

He added that backed by the solid performance, HCL Technologies remains confident in its ability to continue delivering industry leading growth.

In US dollar terms, HCL Technologies reported a 44.2 per cent rise in net profit for the June quarter to USD 305.4 million, while revenues rose 14.6 per cent to USD 1.4 billion.

Application services revenue grew 7.9 per cent year-on -year in dollar terms, while that from infrastructure services moved up 25.6 per cent for the June 2014 quarter compared to the same period last year.

“HCL Technologies Q4 FY14 results were above our estimates on all front. We like the company’s performance in software vertical. However, ability to maintain its margin post software vertical revenue expansion remains the watchable going-ahead,” Research IndiaNivesh Securities Head Daljeet S Kohli said.

For the full year ended June 30, 2014, its net profit moved up 58.3 per cent to Rs 6,369 crore as against Rs 4,023 crore in the previous fiscal. Revenues rose 27.8 per cent to Rs 32,917 crore during the year as compared with Rs 25,758 crore in FY 2012-13.

HCL said it has signed over 50 transformational engagements with more than USD 5-billion Total Contract Value (TCV) during FY 2013-14.

The company’s scrip was trading at Rs 1553.60 apiece in late afternoon trade, 2.74 per cent below yesterday’s close on the BSE.

“While the broad numbers look healthy and the HCL Tech management looks happy on the outside, the investors are questioning the lopsided growth, i.e heavy reliance on few pillars like infrastructure management services, chosen verticals and geographies,” Greyhound Research CEO and Chief Analyst Sanchit Vir Gogia said.

Talking about growth in quarter ahead, Gupta said there are significant opportunities in the European region as well as in the US market.

“Our pipeline is stronger today than it was at the same time last year. Europe has significant opportunities and there is huge potential in the US too. In RoW, Australia is witnessing good traction,” he added.

Americas accounted for 57 per cent of the company’s revenues, followed by Europe at 30.5 per cent and Rest of World (RoW) at 12.5 per cent.

The firm said it added one client in USD 100-million plus (deal size) category, four clients in the over USD 50-million and 16 clients in more than USD 20 million segment.

Gupta said the company is witnessing good demand for digital services as well as engineering and R&D services.

“We are increasing our focus on security as cyber threats are on the rise and enterprises are concerned. Security will have a big role to play as Big Data grows and the ecosystem of Internet of Things and Machine to Machine communication grows further,” he said.

The firm added 8,442 people (gross) and 1,501 people (net) during the quarter to take its total headcount to 91,691. Its rate of attrition remained unchanged at 16.9 per cent.

Asked about wage hikes, Gupta said onsite employees will be given an increment of 3 per cent, while offshore ones will get 7 per cent increase.

“Our promotion cycle is staggered and begins this month. We expect the total impact of hikes to be about 180 basis points,” he added.

HCL’s cash and cash equivalents, investments and borrowings at the end of June 2014 stood at Rs 1,020.6 crore. “The superior operating performance has been accompanied by efficient working capital management including DSO (days sales outstanding), high conversion of profits into cash and return on equity at historic high of 36 per cent,” HCL Technologies CFO Anil Chanana said.

He added that the company will invest 3-3.5 per cent of its revenue on capital expenditure to upgrade and expand delivery centres and other operational requirements. The company announced dividend of Rs 12 per share, its 46th consecutive quarter of dividend payout.

Source: PTI

HCL Technologies net profit rises 54%, beats estimates #Press #Media #Mint

The net profit climbs to Rs1,834 crore, while net sales for the reporting quarter rise 21% to Rs8,424 crore

HCL Technologies Ltd, India’s fourth largest software exporter, posted a better-than-expected 54% rise in June quarter profit.

The net profit climbed to Rs.1,834 crore, while net sales for the reporting quarter rose 21% to Rs.8,424 crore. In dollar terms, net income stood at $305 million on the revenue of $1.4 billion.

Analysts were on average expecting the company to post consolidated net profit of $268.209 million on revenue of $1.407 billion for the quarter, according to Bloomberg estimates. In rupee terms, the expected net profit was Rs.1,611.7 crore on the net sales of Rs.8,452.8 crore.

HCL’s current growth trajectory also suggests that it may surpass industry expectations for the current fiscal year, experts said. For fiscal 2014-15, industry lobby Nasscom expects software exports revenue to grow 13-15% in FY15.

“The last quarter has been lukewarm for the industry at large but HCL Technologies has done well in Europe and other key verticals like Public Services and Financial Services,” said Sanchit Vir Gogia, chief analyst and CEO, Greyhound Research. “More specifically, the company has seen growth for its infrastructure management services and has managed to add significant deal wins in the last quarter—earlier this year the company bagged a $500 million contract from PepsiCo. Inc. for infrastructure management services and a $400-million contract from DNB Bank, Norway”

This comes as the country’s top three IT firms post mix results.

Earlier this month, India’s largest software services exporter Tata Consultancy Services Ltd (TCS) reported sharp increases in fiscal first-quarter profit and revenue, beating analysts’ estimates, with net profit rising 45% to Rs.5,568 crore for the June quarter on the revenue of Rs.22,111 crore. India’s second-largest software services exporter, Infosys Ltd, posted a 15% rise in net profit to Rs.2,886 crore on revenue of Rs.12,770 crore, while Wipro Ltd, India’s third largest software firm saw a 30% rise in fiscal first-quarter profit, marginally below analysts’ estimates. Its net profit rose to Rs.2,103 crore while revenue rose to Rs.11,136 crore.

Total contract value of the bookings exceed $5 billion in the year ended June, said the company in the BSE filing. The consolidated profit for the year ended June stood at $1.03 billion on the revenue of $ 5.3 billion. It announced dividend of Rs.12 per share.

Shares of HCL Technologies dropped 15.4% to Rs.1,597.35 on the BSE at 8:56am, while the exchange’s benchmark Sensex rose 0.37% to 26,087.42 points.
Source: Mint

HCL Tech April-June net up 13% on quarter at Rs 1,834 cr, margins surprise #Press #Media #FirstBiz

HCL Technologies posted a better-than-expected 13 percent increase in net profit during April-June on robust growth in operating margins.

The company’s net profit stood at Rs 1,834 crore, compared with a CNBC TV18 poll estimate of Rs 1,611.4 crore.

Its earnings before interest and tax, or operating profit, declined a marginal 1 percent on quarter to Rs 2038 crore. However, the figure was higher than the poll estimate of Rs 1,992 crore.

Dollar revenue grew at a modest 3.4 percent on quarter to $1,407 million, compared with an estimate of $1,412.4 million.

The rupee revenue at Rs 8,424 crore came in lower than the estimate of Rs 8,448.2 crore.

The company said it added one client in the over $50 million category during the quarter.

The company’s EBIt margins stood at 24.2 percent, down from 24.8 percent a quarter ago, but higher than the estimated 23.6 percent. Software companies usually witness a squeeze on their margins in the April-June quarter due to the salary increases affected during the quarter.

“HCL continues to demonstrate its ability to navigate the dynamic economic environment and grow profitably by delivering “relevant” and unique service experience to its customers fueled by the ‘Relationships Beyond the Contract’ philosophy. We will continue to build on this ability to deliver differentiated value to clients and stakeholders,” Shiv Nadar, Chairman and Chief Strategy Officer, was quoted as saying in the press release.

“With a year-on-year increase of 28 percent in revenues and 58 percent rise in net income HCL has posted a robust Financial Year performance which emphatically demonstrates the continued success and relevance of our overall strategy. In FY14, the company crossed the US$ 5bn revenue milestone and further evolved the key building blocks to deliver next generation propositions to our customers. Backed by this solid performance, we remain confident in our ability to continue delivering industry leading growth at HCL,” said CEO Anant Gupta.

Analysts told CNBC-TV18 that the company’s numbers were good but the bigger surprise was on the margins front.

Pramod Gubbi of Ambit Capital told the TV channel that the company’s topline growth was slightly better than the estimates. “We expected hit on margins. This uplift is a big surprise for us,” he said.

He expects the company to bridge the valuation gap with its bigger rivals. HCL Tech has outperformed consistently for 2-3 years, he said, adding that there is no reason for it to trail behind the likes of Infosys and Wipro.

Sanchit Gogia, Chief Analyst and CEO, Greyhound Research—an independent IT and Telecom Research and Advisory firm, believes the last quarter has been lukewarm for the industry at large but HCL Tech has done well in Europe and other key verticals like Public Services and Financial Services. More specifically, the company has seen growth for its infrastructure management services and has managed to add significant deal wins in the last quarter—earlier this year the company bagged a $500 milion contract from PepsiCo for infrastructure management services and a $400-million contract from DNB Bank, Norway, he added.

Source: FirstBiz

The Social CIO #Press #Media

Enterprise technology decision makers are increasingly leveraging social network and technologies to foster growth in their organisations.

Social technologies are playing a major role in fostering growth among organisations and enterprise technology decision makers are leveraging social networks in numerous innovative ways. There are some key verticals like BFSI, telecom, retail and hospitality which is using social technologies to reach out to their customers. Interacting with the customers on a regular basis allows enterprises to know their requirements and this helps in coming up with offers or products that are liked by the customers.

According to Atul Nigam, CIO, Micromax India, “Social platforms like Facebook, Twitter, Linkden allows us to reach our customers and get to know what are their requirements. CIOs can play a major role in providing apt business analytics to identify a specific trend and that helps in coming up with offers/promotions which customers can relate to. Our company has seen tremendous growth in the last five to six years and for us to sustain this growth rate, we need to know our customers better and social technologies plays an integral role in identifying this.”

Enterprise technology decision makers are leveraging social technologies to provide analytical insights about consumers. This in turn is helping enterprises to be more customer-friendly and focussed in their approach.

According to Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research, IT organizations are struggling to deal with the invasion of multiple consumer-driven social technologies inside corporate firewalls. Employees continue to use these tools — with or without IT’s knowledge and approval — to help them improve their performance and do their work more efficiently. Employee adoption is catalysing many companies in Asia Pacific to proactively use (or at least plan to use) social tools as part of their IT setup, giving users the choice to adopt new tools to improve productivity and hence improve employee satisfaction.

CIOs across verticals agree that social analytics can play a key role in enhancing customer experience.

According to KK Chaudhary, CIO, Lanco Infratech, “I vouch for social analytics and I have witnessed many of my peers helping out their marketing team in getting to know different aspects of customer behaviour. Although, we are into power and do not need to interact with our customers via social medium, but I feel there are many verticals where one needs to interact directly to the customers and social technologies helps a lot of achieving this feat. At Lanco, we use internal social tool which helps in connecting with the employees and also makes them updated with the new developments in the organisation.”

Source: CIO & Leader