HCL Technologies profit up 73 percent, beats estimates

BANGALORE Wed Apr 17, 2013 1:29pm IST

1 of 4. People walk in front of the HCL Technologies Ltd office at Noida, on the outskirts of New Delhi April 17, 2013.

Credit: Reuters/Mansi Thapliyal

Related Topics

Stocks

   

BANGALORE (Reuters) - HCL Technologies Ltd(HCLT.NS), India's fourth-biggest software services provider, beat analysts' estimates with a 73 percent rise in quarterly profit after winning orders and reducing staff for the second quarter in a row.

Net profit rose to 10.4 billion rupees in its fiscal third-quarter ended March 31 from 6 billion rupees in the year-earlier period, said HCL Technologies, whose customers include Finnish mobile phone maker Nokia Oyj.

The result compared with the average forecast of 9.35 billion rupees in a survey of 16 analysts by Thomson Reuters I/B/E/S. HCL follows a July-June fiscal year.

It was also much faster than a 3 percent rise in quarterly profit at larger rival Infosys Ltd(INFY.NS), which has been losing market share to the likes of HCL and industry leader Tata Consultancy Services Ltd(TCS.NS). Shares of Infosys plunged 21 percent on Friday after it issued lower-than-expected revenue guidance.

TCS is due to report March quarter results later on Wednesday.

During the quarter, HCL added 37 customers. The company reduced 791 staff, taking the total to 84,403 from 85,194 at the end of the December quarter, maintaining tight control of headcount after shedding jobs in the previous quarter as well.

The future of the IT industry lies in transforming traditional outsourcing into higher-value services that solve business problems with technology innovations, Vice Chairman Vineet Nayar said in a statement.

Exports in India's $108 billion IT outsourcing industry rose 10.2 percent in the fiscal year that ended in March, according to the National Association of Software and Services Companies (NASSCOM). The industry group expects export growth of 12 to 14 percent in the fiscal year that started this month.

(Reporting By Harichandan Arakali; Editing by Chris Gallagher)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage