Noida-based HCL Technologies Ltd, India’s fifth largest software services firm by revenues, reported a 6.3% rise in revenues to Rs1,817 crore for the December quarter, beating the business growth rate at its much larger peers Tata Consultancy Services Ltd or TCS and Infosys Technologies Ltd.
HCL Technologies attributed its growth to increased business volumes and higher billing rates in the quarter, which is the second in its current financial year. TCS grew its latest quarter revenues by 5.3% over the preceding quarter, while Infosys reported a 4.5% expansion.
Net profits at HCL Technologies, at Rs333 crore, was up 7.9% on a quarterly basis. The revenues and profits at TCS and Infosys are about four times that of the HCL firm.
Though business for the firm from the US grew 8.9% this quarter, “the growth this quarter was led by Asia Pacific, particularly Japan and Europe (Australia, New Zealand),” said Vineet Nayar, chief executive and president at HCL Technologies.
Pankaj Kapoor, who tracks the tech sector at ABN AMRO Asia Equities (India) Ltd, said a weak outlook on the US economy will weigh on the HCL Technologies stock in the next three months. Shares of the firm closed at Rs267.60, down 0.28% on the Bombay Stock Exchange.