HCL's quarterly profit drops 36% on sluggish orders

Friday, 24 January 2003, 08:00 Hrs
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NEW DELHI: HCL Technologies, one of India's software development majors, Thursday said its profit in the quarter ended December 31, 2002, fell by 36 percent from a year-ago period as its clients cut back orders.

Net income of HCL Technologies touched 805 million in the October-December quarter of fiscal 2002-03, down from 1.26 billion logged in the same period the previous year, said an HCL statement issued here.

Gross revenue of the New Delhi-based company, however, registered a growth of 17 percent to 4.68 billion in the same period from 4.01 billion logged in the quarter ended December 31, 2001.

HCL Technologies, India's fifth-largest software exporter, said it added 21 new customers during the October-December quarter, including two Fortune 500 firms, taking the total number of clients to 356.

The new clients include a Fortune 1000 media company, a Fortune 500 manufacturer of electrical and electronic products, a Fortune 500 research-based pharmaceutical company, the statement said.

HCL Technologies also added 632 employees in the quarter ended December 31, 2002, increasing its total manpower strength to 7,788.

"HCL Tech's organic software business registered an upward trend, despite an ongoing client rationalisation programme," said the statement.

HCL, whose clients include blue-chip global firms such as Cisco Systems, said its earnings from Europe continued to grow in the October-December quarter and accounted for 17 percent of total revenue, up from 15 percent last quarter.

The company has operations spanning 25 locations in 14 countries. It also acquired the software business of another group firm HCL Infosystems through a share swap in the past quarter.

HCL Technologies, through one of its subsidiaries, is also in the process of acquiring the technical help desk business of HCL Infinet Ltd., a subsidiary of HCL Infosystems Ltd.

"I am confident that our other investments will also emerge strong in their respective areas," said Shiv Nadar, chairman, president and chief executive officer of HCL Technologies.

"HCL Tech's approach is sharply focused towards putting together the building blocks for enhanced capabilities and wider reach, across our chosen market-spaces," he added.
Source: IANS
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