HCL Tech Sees Lower Revenues & Profits In Sept Quarter

In its first quarter of the financial year 2013-14, HCL Technologies posted a disappointing performance on a sequential basis. Following the decline in income from its BPO and infrastructure-related services, the revenues dropped by 6.5% to Rs 3844 crore. The revenue from software services stood at Rs 2435 crore, and its BPO services and infrastructure services income was at Rs 179.5 crore and Rs 1229.6 crore respectively.

HCL Tech's operating expenses reduced by 10% to Rs 2221 crore in the September quarter due to cost cutting in travelling costs and other expenses. As regards the foreign exchange in the quarter, it reported a loss of Rs 4 crore as against a profit of Rs 5.92 crore in the June quarter.

Its operating profit also went down by 1% to come in at Rs 1623 crore. Further, the other income dipped by 34% to Rs 114 crore. Along with the decline in revenues, the company's net profit reduced by 4.6% to Rs 1291 crore as against Rs 1354 crore in Q4FY13.

In dollar terms, HCL Tech reported depressed growth in sales as compared to its rivals TCS and Infosys. The company's share price declined by 6% to Rs 1092 per share after the announcement of the results.