HCL Technologies result Q3 FY 2014: revenues up 14%, profit up 40%

Indian IT services firm HCL Technologies today said its revenue rose 14.3 percent to $1.36 billion in Q3 FY 2014, while net profit grew 39.9 percent to $264.2 million.

Dipen Shah, head – Private Client Group Research, Kotak Securities, said: “HCLT’s results were higher than expectations, on the margins front. Revenue growth of 2.9 percent in CC terms was in line with expectations.

“It is also higher than that reported by Infosys and TCS. HCLT has reported high revenue growth and consistent improvement in margins over the past few quarters. The company needs to improve growth rates in non-IMS businesses and implement more levers to sustain margins as utilization levels are at high levels and cost efficiencies may not yield significant gains, going ahead,” Shah added.

The Application Services business registered a robust performance led by Digital Systems Integration proposition on the discretionary side and ALT ASM (offering) on the non-discretionary side this quarter.

During the quarter, HCL Technologies added 8,291 people (gross) and 1,858 (net) employees, taking the total headcount to 90,190 as on March 31, 2014.

The company signed 12 transformational engagements this quarter and over dollar one billion in total contract value, with Digital Systems Integration, ALT ASM and Infrastructure Management Services continuing to drive the deal win momentum.

“We continue on our growth momentum with a strong revenue growth of three per cent quarter-on-quarter along with 10th straight quarter of margin expansion,” said HCL Technologies president and CEO Anant Gupta.

Financial and manufacturing led the wins in verticals, while the US and Europe in terms of geographies.

Americas market grew 11 percent year-on-year, Europe (26 percent) and Rest of the World (4 percent).

The company added two clients each in $50 million and $30 million categories.

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