Co misses revenue expectations, but crosses $1-billion mark in quarterly sales
OUR BUREAU NEW DELHI
HCL
Technologies, the country’s fifth-largest software exporter, missed
revenue expectations but crossed the $1-billion mark in quarterly sales
to post a 49% growth in net profit for the July to September period.
The company, which counts companies such as Xerox, Mecom, Microsoft and the controversial News of the World among its clients, grew revenues for its first quarter ended September by nearly 25% to . 4,651 crore. Its net profit grew 49%to . 497 crore during the review period.
The company will credit the equivalent price of its five shares in the payroll of its 80,500 employees for this month’s salary, on achieving the billion-dollar-sales mark. Net profit for the company since last quarter, however, declined in dollar terms by 6% on account of a 12-14% salary hike, currency movements, and a capital expenditure incurred in its first quarter ended September 30 to open new centres overseas.
The Noida-based company’s stock declined 8.5% on the BSE on Tuesday in a weak market. HCL’s bigger rival TCS which had posted weaker-than-expected results on Monday, declined 8.2%, making the IT indices tumble.
“The macro-economic situation is bad. But it is not necessarily translating into weaker business. A lot of churn in the existing deals in the market is translating into new business for us,” said HCL Technologies CEO Vineet Nayar. The company won 12 new deals in the quarter, from companies like EMI Music, Vancouver City Savings Union and renewed existing ones such as Deutsche Bank.
“The world IT budgets are either static or declining. The industry is operating at billing rates pre-recession in 2008. Its time IT services moved into a declining cost scenario as with IT hardware and electronics which become cheaper every year,” he added.
The company has about $500 million in cash, and a hedge position of $713 million. It incurred an impact of about $3.8 million on forex losses. HCL Tech has projected $230 million to be spent in capex for this year.
The stock options programme will cost the company about . 25 crore. Analysts remain underweight on IT sector. and companies.
The company, which counts companies such as Xerox, Mecom, Microsoft and the controversial News of the World among its clients, grew revenues for its first quarter ended September by nearly 25% to . 4,651 crore. Its net profit grew 49%to . 497 crore during the review period.
The company will credit the equivalent price of its five shares in the payroll of its 80,500 employees for this month’s salary, on achieving the billion-dollar-sales mark. Net profit for the company since last quarter, however, declined in dollar terms by 6% on account of a 12-14% salary hike, currency movements, and a capital expenditure incurred in its first quarter ended September 30 to open new centres overseas.
The Noida-based company’s stock declined 8.5% on the BSE on Tuesday in a weak market. HCL’s bigger rival TCS which had posted weaker-than-expected results on Monday, declined 8.2%, making the IT indices tumble.
“The macro-economic situation is bad. But it is not necessarily translating into weaker business. A lot of churn in the existing deals in the market is translating into new business for us,” said HCL Technologies CEO Vineet Nayar. The company won 12 new deals in the quarter, from companies like EMI Music, Vancouver City Savings Union and renewed existing ones such as Deutsche Bank.
“The world IT budgets are either static or declining. The industry is operating at billing rates pre-recession in 2008. Its time IT services moved into a declining cost scenario as with IT hardware and electronics which become cheaper every year,” he added.
The company has about $500 million in cash, and a hedge position of $713 million. It incurred an impact of about $3.8 million on forex losses. HCL Tech has projected $230 million to be spent in capex for this year.
The stock options programme will cost the company about . 25 crore. Analysts remain underweight on IT sector. and companies.
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