HCL Tech Jan-March net up 73%; shares gain

HCL Tech Jan-March net up 73%; shares gain
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First Published: Wed, Apr 21 2010. 12 14 PM IST
Updated: Wed, Apr 21 2010. 12 14 PM IST
New Delhi: Software services firm HCL Technologies said on Wednesday its quarterly net income rose by 73% on year, in line with its larger peers, on strong volume and revenue growth.
Shares in HCL Technologies, which the market values at about $5.5 billion, rose as much as 6.8% after the results and were trading up 6.25% at Rs366.95 at 10.08 am.
Net income rose to Rs263 crore for January-March quarter, while sales increased 23% to Rs1287 crore as the company witnessed revenue growth across all IT services offerings and geographies led by US.
Net income increased 78% on year to $43 million and revenue rose 21.4% $564.4 million under US accounting norms. The company added about 2,500 employees in the March quarter, it said in a statement.
The results were in sync with street-topping performances at larger peers including Tata Consultancy Services and Infosys Technologies, strengthening belief that IT services sector was fast recovering from the global downturn.
HCL, among India’s top five software services firm, won 13 new deals from diverse verticals across the world, including Vodafone, Advanstar and Malaysian Airlines.
The software services firm plans to hire 5,000 fresh college graduates on a net basis in 2010, Anant Gupta, president, HCL Infrastructure Services division said on Wednesday.
Operating margins in IT services expanded 130 bps from a year ago and 40 bps from the last quarter, CFO Anil Chanana said in a statement.
Research firm Gartner has forecast a 5.3% rise in global IT spending in 2010 to $3.4 trillion, after a 4.6% fall last year.
The strengthening rupee, which rose 3.6% against the dollar in the March quarter after a 4.7% gain in 2009, higher wages and competition from global firms such as IBM, Accenture and Hewlett-Packard are key risks for the nearly $60 billion sector.
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First Published: Wed, Apr 21 2010. 12 14 PM IST