Heavy profit booking witnessed, thanks to good HCL quarter numbers

HCL Technologies (HCL) India's fourth largest software services company announced its December ending Q2FY16 result on Tuesday before market hours. The IT services provider follows July-June as its financial year. The result beat the street expectations.

On financial front the consolidated net revenue from operations of HCL reached to Rs 10341 crores in Q3FY16 compared to Rs 10097 crores in Q2FY16, an increase of 2.04 per cent quarter on quarter (QoQ). The EBITDA stood at Rs 2225 crores this quarter compared to Rs 2092 crores in Q2FY16, an increase of 6.4 per cent QoQ. The EBITDA margin stood at 21.51 per cent this quarter compared to the margin of 20.71 per cent in Q2FY16. The substantial increase in EBITDA is related to slow growth in direct expenses of company. The direct expenses increased by just 0.38 per cent QoQ. The net profit stood at Rs 1920 crores in Q3FY16 compared to Rs 1726 crores in Q2FY16, an increase of 11.2 per cent QoQ.

In constant currency (CC) terms HCL's revenue in dollar terms is USD 1566 million, which has grown 2.1 per cent sequentially and 9.3 per cent year on year (YoY). Net income stands at USD 291 million, an increase of 10.3 per cent QoQ and 5.4 per cent YoY.

The six month ending consolidated net revenue from operations in CC terms increased by 6.37 per cent and reached to USD 3110 million compared to USD 2924 million for the same period last year. The net profit for the same six month period stood at USD 555 million compared to USD 615 million crores, a decrease of 9.78 per cent from same review period last year.

Earlier in this quarter the company faced a challenging Chennai situation, but the resilient business models; robust business continuity; and disaster recovery practices;coupled with tremendous support from clients and employees helped them to face the challenge extremely well, the company reported.

President & CEO of HCL Technologies Anant Gupta said “As part of HCL's 21st Century enterprise blueprint, our investments and focus on BEYONDigital, Next–Gen ITO and IoT WoRKS is enabling us to stay ahead of the curve and achieve a healthy business growth and financial performance.”

HCL informed BSE that the Board of Directors of the Company in its meeting has declared an Interim Dividend of Rs. 6/- per equity share of Rs.2/- each of the Company for the Year 2015-16. Following the good quarter results the scrip is trading at Rs 831.60, a decrease of 1.39 per cent due to heavy profit booking.