HCL Technologies, one of the leading software exporters, registered a growth of 32.27% in the consolidated net profit to Rs 18.73 billion for the quarter ended Sept 30, 2014 as compared to Rs 14.16 billion in the same period last year. On quarter on quarter basis, it posted a rise of 2.13% in the net profit. Analysts on average had predicted net profit to come at Rs 17.42 billion.
Consolidated revenues has increased to Rs 87.35 billion for the quarter ended Sept 30, 2014 from Rs 79.61 billion in the same period last year, representing increase of 9.72%. On quarter on quarter basis, it posted a rise of 3.69% in the revenues.
Commenting on the results, Dipen Shah, head-private client group Research, Kotak Securities, ''HCLT's results were below estimates. Revenues disappointed with a Constant Currency growth of 3.2%. EBIDTA margins also came in slightly below expectations. The Constant Currency growth has moderated in past few quarters and overall revenue growth has come in largely on the back of IMS. The company needs to improve growth rates in non-IMS businesses.''
Meanwhile, Sarabjit Kour Nangra, VP research, IT, Angel Broking said, ''In terms of order flow, the HCL has signed 15 Transformational engagements with more than USD 1 billion of total contract value in this quarter, led by global infrastructure services, engineering and R&D services, application services and the digitalization suite across software product and platform engineering. Manufacturing and Consumer Services led the wins in verticals and US in geographies. We maintain our buy rating on the stock with price target of Rs 1,968.''
Shashi Bhusan, Prabhudas Lilladher, opined, ''HCLT revenue grew by 3.7% QoQ to Rs 87.35 billion for Q1FY15 in INR term, whereas revenue in USD terms grew by 1.8% QoQ to USD 1,433 million. We expect stock to witness downtick by 2‐4%, despite possibility of earnings upgrade as revenue moderation is key negative in‐line with our expectation.''
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