HCL Projects Double-Digit Revenue Growth
NEW DELHI: Software major HCL Technologies Ltd. on Friday projected 11-13 pct revenue growth for fiscal 2016-17, based on robust performance in the second quarter (July-September) in dollar terms.
In a regulatory filing to the stock exchanges, the Noida-based IT outsourcing firm said its revenue will grow 12-14 pct in constant currency (CC), which translates into 11-13 pct annual growth for FY 2017 on dollar value as of September 30.
Operating margin (Ebit) for the fiscal is expected to be in the 19.5-20.5 pct range.
Earlier, the company reported 
2,014-crore net profit for second quarter, registering 16.7 pct annual growth in rupee terms.
"Revenue for the quarter under review (Q2) increased 14 pct year-on-year (YoY) to 11,519 crore," noted the filing.
In dollar value, the firm's net income rose 14 pct to $301 million and revenue 11.5 pct to $1,722 million ($1.7 billion) under the International Financial Reporting Standard.
Earnings before interest and tax (Ebit) grew 18.4 pct to 2,318 crore and 15.9 pct to $347 million under IFRS.
Sequentially, however, net profit, revenue and Ebit were flat or marginally lower in rupee and dollar terms from the first quarter (April-June) of this fiscal (FY 2017).
"We are enthused with overall Q2 performance. Revenue increased 12.8 pct YoY on CC, earnings per share (EPS) 16.8 pct YoY, demonstrating that our business model is focused on growth and profitability," said HCL Chief Financial Officer Anil Chanana in a statement later.
The broad-based growth across verticals was driven by public services at 25 pct, retail and consumer packaged goods (CPG) 21.6 pct, life sciences and healthcare 15.9 pct and telecom, media, publishing & entertainment 14.9 pct on CC basis.
Client addition has been strong in the quarter, with 8 in $1 million account, 13 in $10 million, 7 in $20 million, 10 in $40 million, two in $50-million and one in $100-million.
"We are a partner of choice for enterprises through differentiated strategy that encompasses core services, integrated next-generation offerings and platforms, in-line with our growth strategy," said company's new Chief Executive C. Vijayakumar.
The company also announced a whopping 300 pct interim dividend of Rs 6 per share of Rs 2 face value for the first half (April-September) of this fiscal and 28 pct return on equity for the quarter under review.
"Digital age is transforming the paradigm, redefining the way business and technology engage with each other. This is driving an inflection point in the global socio-economic landscape," said Chairman and Chief Strategic Officer Shiv Nadar on the occasion.
The company is investing $55 million in IP (Intellectual Property)-based partnership with IT multinational IBM to cover API/web service enablement for mainframes.
"We have been reading early signals of this change and built a sustainable business model by driving focus around technologies of the future, investing in strategic platforms and creating value for the communities in which we operate globally", said Nadar, also the company's Chief Strategy Officer, on the occasion.
The company hired 9,083 people for the quarter during which 4,859 techies left, resulting in 4,224 net addition and taking the headcount to 109,795 from 107,968 quarter ago and 105,571 year ago.
The attrition rate climbed to 18.6 pct from 17.8 pct quarter ago and 16.3 pct in like period year ago.
The company's blue chip scrip of Rs 2 face value gained 15.25 per share trading at 830.50 in post-noon session from Thursday's closing price of 815.25 and after opening at 826, touching a high of Rs 848.50 and low of Rs 822.
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