HCL Tech June-quarter profit surges 52 per cent; beats forecast
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HCL Technologies, India's fourth largest software services firm, on Wednesday posted a better-than-expected 52 percent jump in net profit for April-June, as all its verticals and geographies posted strong growth.
HCL, which counts Microsoft, IBM, HP and Oracle as partners, said consolidated profit rose to 5.11 billion rupees for April-June, compared with a profit of 3.37 billion rupees a year ago.
Revenue rose 27.5 percent to 43 billion rupees, on an average exchange rate basis.
A Reuters poll of brokerages showed analysts expected profit to rise 45 percent to 4.94 billion rupees, on revenue of 43.18 billion rupees.
India's top three software firms, Tata Consultancy Services (TCS), Infosys Ltd and Wipro Ltd have all in the past weeks warned of a volatile global economy which may reduce client spending.
Growth in India's $76 billion software services sector has slowed down in recent quarters due to global economic uncertainty, severe competition, rising wages, high staff turnover rates and management shakeups at Infosys and Wipro.
Most Indian IT firms see margins slipping sequentially for the June quarter, when they hike wages of employees - a key factor to tackle high attrition rates in the ultra-competitive industry.
HCL, which follows a July-June fiscal, however raises wages only in its fiscal first quarter, enabling it to post better margins compared to peers.
HCL, which added 3,626 employees on a net basis during April-June, said operating margin was almost flat at 18.5 percent for the period.
At 09:35 AM, HCL shares, valued at more than $8 billion, were down 1.16 percent at 509 rupees on the National Stock Exchange.
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