• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books
• Gallery

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, Aug. 25 HCL Technologies has posted a consolidated net income of Rs 330.1 crore for the fourth quarter ended June 2009, a 134 per cent jump over the year-ago period when the company had experienced significant foreign exchange losses.

The country’s fourth largest IT exporter — whose net income for the fiscal 2009 rose 13.6 per cent — beat analyst estimates, benefiting from the deals signed in the preceding quarters, the growth momentum in infrastructure services space, as also in media and publishing verticals. It, however, said the environment continues to be “uncertain”, and deal signing was “soft.” Its CEO, Mr Vineet Nayar, anticipates a recovery only in the calendar year 2010.

“Going by the quarterly earning growth of S&P 500 companies, the environment is still uncertain and the first signs of recovery are only expected two quarters ahead when 50 per cent of the S&P 500 companies are expected to register a quarter-on-quarter growth… So the recovery is anticipated only in the next calendar year. But it is an environment where we see opportunities…,” Mr Nayar said.

HCL Technologies does not give a specific guidance.

Seen sequentially, the fourth quarter net income of Rs 330.1 crore represented a 51.3 per cent increase over the previous sequential quarter. The revenue stood at Rs 2,908 crore, up 34.7 per cent year-on-year, and 1.6 per cent sequentially.

In dollar terms, the fourth quarter net income at about $69 million was up 110.3 per cent over the year-ago period and 60.2 per cent quarter-on-quarter. HCL has also made an additional tax provision of $6.6 million as the correction of an anomaly pertaining to Section 10AA of the Income-Tax Act, does not come with a retrospective effect.

The company’s quarterly EBITDA margin expanded to 22.1 per cent, from 21.3 per cent in the third quarter, on better utilisation and control on SG&A expenses; but fell from 23.1 per cent a year-ago.

For the full fiscal, the net income stood at about Rs 1,278 crore, up 13.6 per cent over the financial year 2008, while the revenue at Rs 10,591 crore translated into a 40 per cent growth. In dollar terms, the FY09 net income was $264 million, down 5.6 per cent on the previous year.

The company’s current hedges are pegged at $813 million, and it sees a hedging loss of $127 million next year based on the June-end exchange rate, said the HCL Tech CFO, Mr Anil Chanana.

More Stories on : Financial Performance | Software | HCL Technologies Ltd | Outsourcing

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line