HCL Technologies Delivers In Q2, Maintains FY17 Guidance
HCL Technologies Ltd. reported its earnings for the June-September quarter that managed to meet analyst estimates.
Net profit for the quarter fell 1.9 percent to Rs 2,015 crore compared to Rs 2,055 crores in the quarter ended June 2016, according to the company’s filing on the exchanges. A Bloomberg estimate of analysts had pegged the figure at Rs 1,969 crore.
The company's revenue grew 1.6 percent from Rs 11,336 crore in the previous quarter to Rs 11,520 crore. In U.S. dollar terms, the revenue rose 1.8 percent to $1.72 billion.
Earnings before interest and tax stood at Rs 2,351 crore, a decrease of 2.6 percent sequentially, while margins fell 90 basis points to 20.4 percent from 21.3 percent.
The company has maintained its revenue guidance for FY17 in constant currency terms between 12-14 percent. In U.S. Dollar terms, the guidance stands between 11-13 percent. The company also expects its operating EBIT margins to range between 19.5-20.5 percent for FY17.
- The company’s financial services sector in constant currency terms saw a growth of 5.6 percent sequentially.
- Revenue from manufacturing fell 0.9 percent quarter on quarter.
- Revenue from infrastructure services grew 4.4 percent.
- Revenue from engineering and R&D services grew 2.3 percent.
The company has entered into an agreement to acquire Butler America Aerospace, LLC (Butler Aerospace), a provider of engineering and design services to US Aerospace and Defense customers. The all-cash deal is said to be worth $85 million.
- Attrition for the company’s I.T. services business stood at 18.6 percent for this quarter compared to 17.8 percent the previous quarter.
- Blended utilization for the quarter stood at 85.3 percent.
- The company has declared an interim dividend of Rs 6 per share.
- The company has also appointed C Vijayakumar as the new Chief Executive Officer.
Shares of HCL Technologies Ltd. gained as much as 4 percent in trade to Rs 848.70. As of 10:30 a.m., they were trading higher by 2.5 percent to Rs 836.75.