HCL Tech: Good performance continued - Views on News from Equitymaster

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

StockSelect
  • MyStocks

MEMBER'S LOGINX

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

HCL Tech: Good performance continued

Oct 18, 2012

HCL Technologies Ltd (HCL Tech) has announced the first quarter results (1QFY13) of financial year 2012-2013, (year ending June). The company reported a 2.9% quarter-on-quarter (QoQ) growth in sales and a 3.6% QoQ increase in net profits. Here is our analysis of the results.

Performance summary
  • Consolidated net sales grew by 2.9% QoQ in 1QFY13 (The company has a June year ending).
  • The growth in revenues was 2.9% QoQ on a constant currency basis and in terms of reported US dollar revenues, the growth in sales was 3.2% QoQ during the quarter. Thus, it is clear that rupee depreciation did not have a meaningful impact during the quarter and more importantly, a volume growth of 4.4% was witnessed during the quarter as compared to 3.4% in the last quarter.
  • There was a continued improvement in EBITDA margin as was witnessed during the last quarter: EBITDA margin expanded by 0.2% QoQ to 22.2% during the quarter as compared to 22% seen during the previous quarter. This was mainly because of the offshore shift in total revenues (44.3% in current quarter as compared to 42.8% in the last quarter) and increase in utilization (81.4% in current quarter as compared to 79.7% during the last quarter). On an absolute basis, EBITDA grew by 3.9%.
  • Net profit grew in line with EBITDA at 3.6% QoQ. The increase in net profit would have been even more had it not been for the effective tax rate, which increased to 23.5% in the current quarter from 22.8% recorded in the last quarter.
  • Net employee count grew sequentially by 1016 during the quarter. This was mainly due to a net addition of 946 in the head count of IT Services. Total employee base at the end of June 2012 was 85,335. In IT services business, attrition rate came down slightly to 13.6% as compared to 14.0% seen at the end of the previous quarter (4QFY12).
  • Added 38 new clients during the quarter. The total number of active clients at the end of September 2012 was sequentially flat at 536.

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


India's #1 Trader
Reveals His Secrets

The Secret to Increasing Your Trading Profits Today
Get this Special Report, The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

HCL TECHNOLOGIES SHARE PRICE


May 29, 2020 (Close)

TRACK HCL TECHNOLOGIES

  • 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

MORE ON HCL TECHNOLOGIES

HCL TECHNOLOGIES - IBM COMPARISON

COMPARE HCL TECHNOLOGIES WITH

MARKET STATS