Continuing Coder Avenue’s good Oct-December quarter run, despite a typically weak season, India’s fourth largest software services firm, HCL Technologies on Thursday beat estimates to report a 5.7% rise in Q2 consolidated net profit on a sequential basis, and 58.4% on-year, on the back of steady growth in manufacturing and infrastructure services.
The company, which follows a July-June fiscal year, had posted a net profit of Rs 944 crore in the year-ago period.
In rupee terms, revenues came in at Rs. 8,184cr, up 2.8% sequentially. HCL Tech won 15 transformational deals during the quarter and booked over $1 billion worth of deals.
Infrastructure services, Europe geography and manufacturing vertical each crossed $1.5 billion in revenues.
Accordingly, infrastructure services grew by 5.9% q-o-q, manufacturing grew by 5% q-o-q, financial services grew by 3.8%, healthcare grew by 3.8% and retail grew by 7.5%.
Geography-wise, Europe business continued to grow the best by 7.8% in the quarter, while the US grew by 3.4% in the quarter, while the rest of the world de-grew by 2.6%.
HCL Technologies added six clients during the October-December quarter, taking the total clients to 844. Total headcount of the company stood at 88,332 for the period, with gross additions at 7,593 and net at 1,136. Attrition was a little higher at 16.6%, as compared to 16.1% last quarter, and utilisation was also down 80 basis points in the quarter at 84.1%.
Dipen Shah of Kotak Securities said, “HCLT’s results were higher than expectations, both on revenues and margins. However, the company needs to improve growth rates in non-IMS businesses to make the overall growth more robust and sustainable.”