HCL Tech Q2 net profit up 6.9% to `2,711 cr, announces bonus shares

NEW DELHI: IT major HCL Technologies on Wednesday posted a 6.9 per cent rise in its consolidated net profit to Rs 2,711 crore for the September 2019 quarter, and raised its revenue growth forecast to 15-17 per cent for 2019-20 on the back of strong deal pipeline.

The company, which had registered a net profit of Rs 2,534 crore in the yearago period as per the Indian Accounting Standards (INDAS), has also announced a bonus share scheme, under which it will offer one bonus share for each share held.

HCL Tech's revenue from operations grew 18 per cent to Rs 17,527 crore in the quarter under review, from Rs 14,860 crore in the year-ago period.

In dollar terms, the net profit grew 5.5 per cent to $376.2 million for the September 2019 quarter, while revenue surged 18.4 per cent to $2.48 billion as compared to the year-ago period, as per the US

Generally Accepted Accounting Principles (GAAP). On a constant currency basis, the revenue grew 20.5 per cent year-on-year and 6 per cent sequentially. For the full fiscal, HCL Tech has raised its revenue growth outlook to 15-17 per cent for 2019-20 from its previous forecast of 14-16 per cent topline growth in constant currency terms.

"This quarter, we have delivered an outstanding performance once again. Revenue growth came in at 20.5 per cent y-o-y on a constant currency basis. Our growth - organic and as well as total growth - both are at top-end from an industry perspective," HCL Technologies President and Chief Executive Officer C Vijayakumar told reporters here.

He added that the company had launched its HCL Software business unit in the just-ended quarter and the segment had registered "extremely monumental" performance. "In the first quarter, we delivered close to $100 million revenues in our product business. We have started on a strong foundation and this will continue to grow in the subsequent quarters," he added. In December last year, HCL Technologies had inked an agreement to acquire select IBM software products for Rs 12,252 crore (about $1.8 billion), including earnouts of Rs 1,035 crore ($150 million). The company closed the deal on June 30, 2019.