HCL Technologies on Wednesday posted results of its fiscal first quarter ending September, reporting a 78 percent rise in net profit helped by higher contract wins.
India's fourth largest software services exporter said consolidated profit rose 3.6 percent to ₹885 from ₹854 crore in the April-June quarter, beating analysts' estimates that stood at ₹800 crore, Thomson Reuters data showed.
The company's net profit in the September quarter last year stood at ₹497 crore.
Sales revenue rose 31 percent to ₹6,091 crore in the reporting quarter against ₹4,651.3 crore in the corresponding period last year. On a month-to-month basis, sales jumped 2.9 percent from ₹5,919 crore in the June quarter.
"A 31% YoY growth in revenues and a 78% growth in net income this quarter reiterates the fact that robust revenue growth can be achieved profitably," Vineet Nayar, vice chairman and CEO of HCL Technologies said, according to Press Trust of India.
HCL Technologies reported volume growth of 4.5 percent in the reporting quarter from 1.8 percent in the previous quarter. The company also announced an interim dividend of ₹2 per share.
Analysts expected that the salary increase declared in July will impact margins for the September quarter. The company had hike wages to 8 percent for its offshore employees and 2 percent for its onsite team.
The high earnings were largely on account of 12 multi-year, multi-million dollar deals the company signed during the reporting quarter. Some key engagements HCL announced were transforming its end-to-end corporate IT Infrastructure landscape, providing and enhancement of SAP support to various organizations, implementing Cloud solutions for a Japan-based firm and several other engagements.
HCL Tech shares valued at ₹41,000 crore hit a 12-year-high, rising 3.83 percent to ₹606.9 in early trade. Later, it slided to ₹590 range in less than two hours.
(With inputs from Reuters)
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