Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
HCL Tech: Satisfactory performance - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

HCL Tech: Satisfactory performance

Jan 17, 2013

HCL Technologies Ltd (HCL Tech) has announced the second quarter results (2QFY13) of financial year 2012-2013, (year ending June). The company reported a 3% quarter-on-quarter (QoQ) growth in sales and a 9% QoQ increase in net profits. Here is our analysis of the results.

Performance summary
  • Consolidated net sales grew by 3% QoQ in 2QFY13 (The company has a June year ending).
  • The growth in revenues was 3.1% QoQ on a constant currency basis.In terms of US dollar, revenues grew by 3.6% QoQ during the quarter. Volume growth of 3% was witnessed during the quarter which was lower than the 4.4% seen during the previous quarter (1QFY13).
  • There was a continued improvement in EBITDA margin during the last quarter: EBITDA margin expanded by 0.4% QoQ to 22.6% during the quarter as compared to 22.2% seen during the previous quarter (1QFY13). That was mainly because of the 2% QoQ growth in direct costs as compared to 3% QoQ growth in net sales.
  • Net profit grew at a much higher rate of 9% QoQ, primarily because of a drop in sequential forex loss. The effective tax rate remained more or less flat during the quarter at 23.4%.
  • Net employee count declined sequentially by 395 during the quarter. That was mainly due to a net reduction of 1,323 in the head count of IT Services. Total employee base at the end of December 2012 was 85,194. Attrition in the IT services business, remained flat at 13.6% as compared to the previous quarter. However attrition in the BPO services increased from 7.5% in 1QFY13 to 8.5% in 2QFY13.
  • Added 39 new clients during the quarter. The total number of active clients at the end of December 2012 increased to 544 from 536.
  • The company has declared an interim dividend of Rs 2 per share (dividend yield of 0.3%).

To Read the Full Story, Subscribe or Sign In
To Read the Full Story, Subscribe or Sign In

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms


Mar 25, 2019 03:37 PM


  • Track your investment in HCL TECHNOLOGIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks