HCL technologies Q3 results posts 13.6% hike in revenues

by CXOtoday News Desk    Apr 17, 2013

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HCL Technologies today released its results for Quarter (Q3) ended March 31st, 2013. The IT major stated that its revenues at US $ 1,191 million, up 13.6  percent Year on Year and 3.2 percent Quarter on Quarter. The net income is at $193 million, up 59.2 percent  YoY and 8.6 percent  QoQ.

It is registering a constant currency growth of 3.8 percent sequentially and EBIT is at $236 million; up 43.9 percent YoY and 3.3% sequentially. GAAP EPS (Diluted) at $1.07; up 60.4 percent YoY. It also announced dividend of Rs 2.0 per share, 41st consecutive quarter of dividend payout.  

“HCL’s sustained growth momentum has been possible because of our uncompromising focus on some strong value fundamentals. Our corporate governance practices are one such foundation, which have enabled us to generate long term value for all of our stakeholders. Empowered by the principles of integrity and transparency, these practices continue to be our core differentiator in a rapidly evolving macro environment,” said Shiv Nadar, Chairman and Chief Strategy Officer, HCL Technologies.

“A key reason behind HCL’s stellar performance over the last few years has been its focus on delivering technology led business process transformation to Global 2,000 Corporations. The future of the IT services industry will lie in transforming traditional outsourcing models to higher value, innovation driven, non-linear and outcome based business models,” said Vineet Nayar, Vice Chairman, HCL Technologies.

“We have delivered yet another quarter of strong performance. Our net margins have improved for six straight quarters and are up by 51.5 percent along with a robust 14.6 percent USD constant currency growth for the 12-month period ended March 31, 2013,” said Anant Gupta, President & CEO, HCL Technologies. “Amidst a challenging and uncertain business environment, HCL continues on its growth trajectory fuelled by its Alternative Outsourcing (AO) approach led by two unique value propositions of Alternative ASM and Enterprise Function as a Service (EFaaS),” he added.

“During the 12-month period ended March31, 2013, our revenues have increased by 27 percent YoY (INR) while the Earnings per Share have grown 74 percent YoY (INR). This increase in EPS has been facilitated by expansion in both gross margin and operating margin by 340bps and 420bps YoY respectively. HCL’s industry leading performance is also manifested in the strong free cash flow conversion at 60 percent of EBITDA and Return on Equity at 31 percent,” said Anil Chanana, Chief Financial Officer, HCL Technologies.

HCL has won over $1 billion in large multi-year transformational deals. Over 90 percent of these deals are from rebid market and more than 50 percent are integrated deals.

Keki Mistry also joins HCL Technologies Board as an independent director. With the addition of Mistry the board strength increases to 11 directors, including nine independent directors.

 Key highlights

 

• Revenues grow by 3.8 percent.

• Europe and Americas grow 6.3 percent and 3.6 percent respectively.

• Growth led by Infrastructure Services at 9.0 percent and Enterprise Application Services at 4.4 percent.

• Growth led by Public Services (Energy-Utilities-Logistics-Government) at 14.8 percent and Manufacturing at 7.8 percent.

QoQ Revenue Growth in Constant Currency YoY Revenue Growth (on LTM basis)

• Revenues grow by 12.5 percent.

• Europe and Americas grow 17.8 percent and 13.3 percent respectively.

• Across the board growth led by Infrastructure Services at 28.3 percent, Engineering and R&D Services at 8.7 percent, Enterprise Application Services 8.1 percent, Custom Application Services at 6.7 percent and BPO at 5.3 percent.

• Broad based growth led by Healthcare at 55.8 percent, Retail & CPG at 18.8 percent, Media Publishing & Entertainment at 14.7 percent and Financial Services at 10.8 percent.