HCL Technologies, the global IT services provider, posted a better than expected results for the quarter ended Dec. 31, 2013. The company reported a consolidated net profit of Rs 14.96 billion; up 58.4% and revenue of Rs 81.84 billion; up 30.4% for the second quarter. On quarter on quarter basis, it posted a rise of 5.7% in the net profit and 2.8% in the revenue.
Commenting on the results, Ankita Somani, research analyst, IT, Angel Broking said, "For Q2FY2014, HCL Tech came out with better than expected set of results largely on all fronts, joining Infosys in signaling the likelihood of a stronger year ahead. Overall, the company performed exceptionally well on the margins front and we continue to remain positive on the stock for a longer-term perspective keeping in notice the company's deal signing trajectory and healthy operating performance since last several quarters. We maintain our Accumulate rating on the stock.''
Dipen Shah, Head of Private Client Group Research, Kotak Securities, ''HCLT's results were higher than expectations, both, on the revenues and margins. Revenues growth of 3% in CC terms was a positive surprise in a seasonally weak quarter. Margins fell slightly despite salary hikes, due to G&A spend rationalization and improved efficiencies. Utilization levels excluding trainees have remained at about 84% in Q2 and it may be difficult to increase the same further. The company needs to improve growth rates in non-IMS businesses to make the overall growth more robust and sustainable. It also needs to implement more levers to sustain and improve margins in the backdrop of high utilization levels and a benign currency.''
Shares of the company gained Rs 56.5, or 4.23%, to settle at Rs 1,391.90. The total volume of shares traded was 351,420 at the BSE (Thursday).
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