HCL Technologies Q4 net rises 27.7%; beats estimates

HCL Technologies Q4 net rises 27.7%; beats estimates

11/05/2017 13:09

India’s fourth-biggest software services firm, HCL Technologies Ltd on Thursday reported a better-than-expected growth of 27.7 per cent in its consolidated net profit after taxes (PAT) at Rs 2,475.27 crore, beating analysts’ estimates of Rs 2,091 crore, for the fourth quarter ended March 31, 2017.

“The consolidated net profit of the company stood at Rs 1,938.66 crore during the corresponding quarter ended March 31, 2016,” HCL Technologies Ltd said in a filing to the Bombay Stock Exchange on May 11, 2017.

Further, the consolidated total revenues of the company grew by 20.7 per cent to Rs 13,183.04 crore during Q4 2016-17, as compared to Rs 10,925.02 crore during the previous quarter ended March 31, 2016.

Commenting on the development, HCL Technologies Ltd, President & CEO, C. Vijayakumar said, “We are very pleased with our industry–leading financial results for both the fourth quarter and the full year FY’17. In Q4, we had a healthy sequential growth of 3.8 per cent (constant currency) in revenues at an EBIT margin of 20 per cent. For the year FY’17, we delivered a strong double–digit constant currency revenue growth of 13.7 per cent at an EBIT of 20.3 per cent, which is at the higher end of the guided range.”

Guidance: The company expects revenue to grow between 10.5-12.5 per cent on a constant currency basis in FY18. The constant currency guidance translates to 9.9 per cent to 11.9 per cent in USD terms based on March 31, 2017 rates, and sees operating margin (EBIT) in the 19.5-20.5 per cent range.

The Board of Directors of the company has declared an interim dividend of Rs 6 per equity share of Rs 2 each of the company for the Financial Year 2017-18. The payment date of the said interim dividend shall be June 02, 2017, the company said in a separate filing.

Meanwhile, shares of the company were trading at Rs 836 apiece, down 0.75 per cent, from previous close on BSE at 13:13 hours.

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