HCL Technologies Q3 Net Profit Rises 59%; Beats Estimates

NEW DELHI: ​IT services exporter HCL Technologies beat market expectations with a 59 per cent rise in March-quarter profit, helped by increasing demand for outsourcing services.

Consolidated net income for the three months ended March 31 rose to Rs 1624 crore from Rs 1020 crore in the same period a year earlier, HCL Technologies said on Thursday. Profit after Tax (PAT) was up 8.5 per cent QoQ.

ET Now had estimated India's fourth largest software services exporter to report a 3.6 per cent sequential rise in its net profits for the quarter ended March 31 to Rs 1551 core.

“Our leadership has been driven by our commitment towards sustainability, diversity and trust through transparency. With an emergence of an increasingly positive macro environment these values will continue to be HCL’s key differentiators and provide an impetus to our future growth”, said Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies.

Revenue rose 30 per cent to Rs 8349 crore. HCL Technologies Ltd has informed BSE that the Board of Directors has declared an interim dividend of Rs 4 per equity share, its 45th consecutive quarter of dividend payout.

The sales for the third quarter rose 2 per cent sequentially to Rs 8,349 crore as compared to Rs 8,184 crore reported in the previous quarter.

HCL's results follow stronger-than-expected profits at Tata Consultancy Services, the No 1 Indian IT services provider, and at No 2 player Infosys.

IT services providers are gearing up for stronger demand this year as an improving global economy encourages the sector's clients to boost spending on technology.

Exports by the country's IT outsourcing sector are expected to rise 13-15 percent in the current fiscal year that started this month, according to the National Association of Software and Services Companies, an industry lobby group.