The Hindu Business Line : HCL to invest Rs 500 cr on three new SEZs

HCL Technologies Ltd will invest Rs 500 crore for building three Special Economic Zones in the country. The investment is part of the Rs 800-crore capital expenditure that HCL plans to make in the next two years.

The company is expected to ramp up its employee base by 10,000 this year and by 35,000 over the next two to three years. At present, the company has a workforce of around 32,000 people, up from 24,000 last year.

Q 4 net up 44 pc

HCL on Saturday also reported a 44-per cent growth in its net profit to Rs 233 crore for the fourth quarter ended June 30, 2006. The company's revenues went up by 35 per cent to Rs 1,254 crore from Rs 927 crore in the corresponding quarter the previous year.

Speaking on the sidelines of the press conference to announce the quarterly results, Mr S.L. Narayanan, Corporate Vice-President, Finance, HCL said, "We have recently got approval from the Government for the three SEZs in Noida, Bangalore and Chennai. The first SEZ is currently being constructed in Noida and is expected to be operational by June."

SEZs' expansion in phases

The SEZs in Noida and Chennai will house 15,000 employees each, while Bangalore will have 5,000 workers. The expansion of these SEZs will take place in phases. HCL is also betting big on engineering services and inventions.

"We have come a full circle and we believe that thrust area for HCL in the next five years will be on inventions. The recent royalty-based agreement with Cisco is just the beginning of things to come," said Mr Shiv Nadar, Chairman and CEO, HCL Technologies. Similar projects are being taken up by HCL in the medico-engineering segment with Johnson & Johnson.

Riding high on IT deals

Riding on some of largest deals in the Indian IT industry, HCL Technologies reported a 31 per cent growth in revenues to Rs 4,388 crore and 27 per cent increase in net profit from Rs 609 crore in 2004-05 to Rs 773 crore.

The EBITDA (before non cash stock option charge) stood at Rs 973 crore; up 27 per cent year-on-year.

The company announced a 200 per cent final dividend taking the total dividend for the whole year to 800 per cent.

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