HCL Tech slips after Q4 results

HCL Technologies fell 1.09% to Rs 1,579.95 at 9:18 IST onBSE after consolidated net profit as per US-GAAP rose 13% to Rs 1834 crore on 0.9% increase in revenue to Rs 8424 crore in Q4 June 2014 over Q3 March 2014.

The result was announced before trading hours today, 31 July 2014.

Meanwhile, the BSE Sensex was down 18.23 points, or 0.07%, to 26,069.19.

On BSE, so far 11,000 shares were traded in the counter, compared with an average volume of 58,421 shares in the past one quarter.

The stock hit a high of Rs 1,597 and a low of Rs 1,567.75 so far during the day. The stock hit a record high of Rs 1,630 on 30 July 2014. The stock hit a 52-week low of Rs 838 on 31 July 2013.

The stock had outperformed the market over the past one month till 30 July 2014, rising 6.74% compared with 2.65% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 13.80% as against Sensex's 16.37% rise.

The large-cap company has an equity capital of Rs 140.01 crore. Face value per share is Rs 2.

HCL Technologies' EBITDA (earnings before interest, taxes, depreciation and amortization) fell 0.7% to Rs 2216 crore in revenue to Rs 8424 crore in Q4 June 2014 over Q3 March 2014.

The company's net profit as per US-GAAP rose 58% to Rs 6369 crore on 28% increase in revenue to Rs 32917 crore in the year ended June 2014 over the year ended June 2013.

EBITDA rose 50.6% to Rs 8666 crore in the year ended June 2014 over the year ended June 2013.

"HCL continues to demonstrate its ability to navigate the dynamic economic environment and grow profitably by delivering relevant and unique service experience to its customers fueled by the 'Relationships Beyond the Contract' philosophy. We will continue to build on this ability to deliver differentiated value to clients and stakeholders," said Shiv Nadar, Chairman and Chief Strategy Officer, HCL Technologies.

"With a year-on-year increase of 28% in revenues and 58% rise in net income HCL has posted a robust Financial Year performance which emphatically demonstrates the continued success and relevance of our overall strategy. In FY14, the company crossed the US$ 5bn Revenue milestone and further evolved the key building blocks to deliver next generation propositions to our customers. Backed by this solid performance, we remain confident in our ability to continue delivering industry leading growth at HCL," said Anant Gupta, CEO, HCL Technologies.

"The superior operating performance has been accompanied by efficient working capital management including DSO, high conversion of profits into cash and return on equity at historic high of 36%. Based on the sustained efforts, HCL has delivered another stellar year of EPS growth of 58% in FY'14. We have declared a dividend of 12 per share making this quarter the 46th consecutive quarter of dividend declaration," said Anil Chanana, CFO, HCL Technologies.

HCL Technologies is a leading global IT services company. HCL leverages its extensive global offshore infrastructure and network of offices in 31 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare & Life sciences.

BS