HCL Tech
HCL Tech posted a set of very good numbers for its third quarter ended 31st March 2014. It posted better-than-expected 8.5% (YoY) and 59% (QoQ) rise in consolidated net profit at Rs.1624 crore. Revenue rose 2% (YoY) at Rs.8401 crore. In US $ terms, its net profit grew 9% (QoQ) at $264 million on a 3% rise in revenue at $1361 million.
The good news is that company has been consistently hiking its EBIT margins and for the tenth straight time, margins came at 24.6%, which is a 7.1% (QoQ) and 44.5% (YoY). This is one of its margins ever. This good performance was despite the forex loss of US$23 million during the quarter though it was lesser than US$25 million in Q2.
In terms of its verticals, BFSI grew 7% (QoQ) and manufacturing grew 2%. The sector which contributes maximum to the revenue is infrastructure services and this segment rose 5%. The only segment to show a degrowth was business services. In terms of geographical growth, USA growth was flat at 0.4% (QoQ), Europe grew 5% while RoW increased 11%.
During the quarter, the company added 8291 employees (gross) and 1858 (net), taking the total headcount to 90.190. Attrition in IT services rose to 16.9% sequentially and utilization was one of the best, vis-à-vis TCS and Infosys at 84.2%. The company added 2 clients each in $50 million and $30 million categories during this quarter.