HCL Tech net up 15%; shares rise nearly 5%

IT services firm HCL Technologies has reported a 14.8% increase in net profit to Rs 2,047 crore for the quarter ended June 30, 2016.

The Noida-based firm had posted a net profit of Rs 1,783 crore in the corresponding quarter of the last fiscal, HCL Technologies said in a statement.

Its revenues for the reported quarter were up 15.9% to Rs 11,336 crore, from Rs 9,777 crore in the year-ago period, as per US GAAP accounting norms.

For FY17, the company expects its revenue to grow 12-14% without fluctuations in currencies.

After the results were announced, the company's shares jumped almost 5% on the BSE. 

On constant currency basis, HCL Tech's revenues were up 11.2% year-on-year.

The company earlier followed the July-June fiscal but has now moved to the April-March cycle as mandated by the Companies Act.

In dollar terms, the company's net profit grew 9.5% to $305.2 million, while revenues rose 10% to $1.69 billion compared to the year-ago period.

"We commence FY17 on a positive note, continuing our robust financial performance, with a strong 6% growth quarter-on-quarter in constant currency terms," HCL Technologies president and CEO Anant Gupta said.

The growth momentum is broad based, encompassing all sectors and service lines, propelled by the company's robust 21st century Enterprise strategy and robust business model, he added.

The company has announced a dividend of Rs 6 per share.

During the quarter, HCL Technologies added 1,211 people, taking the total headcount to 1,06,107 as on June 30 2016.

Attrition in IT services (last 12 months basis) in the reported quarter stood at 17.8%.

HCL signed 13 transformational deals this quarter, across service lines and industry verticals.

The company's cash and cash equivalents stood at Rs 1,240 crore at the end of June 30, 2016.