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HCL Technologies reports 32 per cent rise in September-quarter profit

The IT services provider earned Rs 1,873 crore ($303.44 million) in profit in the quarter ended September 30, 2014.

Nivedita Bhattacharjee   Mumbai     Last Updated: October 17, 2014  | 12:29 IST
HCL Tech reports 32 per cent rise in Q1 profit
(Photo: Reuters)

HCL Technologies, the country's fourth-largest software services exporter, posted a 32 per cent rise in quarterly net profit, beating estimates, as sales in the United States, the company's biggest market, rose.

The IT services provider earned Rs 1,873 crore ($303.44 million) in profit in the quarter ended September 30, 2014, compared to Rs 1,416 srore in the same year-ago period. Analysts, on average, were expecting the profit to be at Rs 1,729 crore, as per Thomson Reuters data.

Shares of HCL Technologies, however, fell more than 8 per cent on Friday, as the company's revenue growth of 12.8 per cent in dollar terms was below market expectations, dealers said.

For most technology outsourcing companies, analysts and investors track the dollar sales numbers as clients oversees get billed in that currency.

IT services major HCL relies heavily on contracts to manage data centres and networks for revenue growth, whereas peers such as Tata Consultancy Services (TCS) and Infosys earn a greater proportion of revenue from higher-margin software services.

(Reuters)

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