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HCL Tech Ups Profit

Indian outsourcing company HCL Technologies reports Q4 revenues up 35% and net income up 44% year on year

August 23, 2006

2 Min Read

NOIDA, India -- Highlights for the Quarter (INR)

  • Sequentially, revenues up 12%; EBITDA up 13%; and net income up 21%

  • Revenues at Rs. 1254 crore, up 35 % YoY

  • EBITDA (before non cash stock option charge) at Rs. 282 crore, up 33% YoY

  • Final dividend of 200%, 14th consecutive quarterly dividend



Highlights for the Year (INR)

  • Revenues at Rs. 4388 crore, up 31% YoY

  • EBITDA (before non cash stock option charge) at Rs. 973 crore; up 27% YoY

  • Total dividend for the year at 800%



Overview

The quarter under review saw HCL Technologies Ltd. ("HCL") record a robust sequential growth of 12% in revenue and a YoY growth of 35% for the quarter at Rs 1254 crore. The growth has been shaped by HCL’s strategic focus on Transformational Initiatives rolled out during the year which enabled it to win some of the largest deals in the Indian IT industry.

"HCL’s "Transformational Strategy" set in motion over the last 12 months has led to a significant positive momentum in our business which is reflected in our underlying business numbers. The landmark deals we have won this year, the global recognition of our employee first strategy, and the sharp acceleration in Remote Infrastructure Management services, consolidation of our BPO business as well as the more mature Technology and IT Services business are very positive trends. We now have the leadership, strategy, and infrastructure to fuel future business growth", said Shiv Nadar, Chairman and CEO, HCL Technologies.

"HCL’s strong sequential revenue growth of 13% and YoY growth of 35% in IT services and Infrastructure Management Services for the quarter is a validation of our Blue Ocean and Transformational Strategies adopted over FY 2006. Four large multi service deals with marquee clients against global competitors have validated this. Emerging high growth areas such as Remote Infrastructure Management, where we have virtually created a new market space through our co-sourcing model, has been a key growth driver this financial year with a 65% increase in revenues, and a run-rate that has more than doubled in the last 12 months", said Vineet Nayar, President, HCL Technologies. He added, "We are now in the process of rapidly scaling up our recruitment engine, deepening our talent base, and ensuring our front and back ends are strengthened to ensure we build on this momentum.

"HCL consolidated its position amongst the top five BPO players in India, as endorsed by NASSCOM, and is today the largest BPO operation in Northern Ireland (UK). Revenues from our Indian operations grew by over 50% during 2005-06 and this business remains on a profitable growth track. HCL BPO also created additional capacity with two state-of-the-art facilities in Noida and Chennai, to cater to future growth". Ranjit Narasimhan, Head of HCL’s BPO operations said.

HCL Technologies Ltd.

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