Indian software services firm HCL Technologies Ltd said quarterly profits surged by 110 percent in dollar terms as media, infrastructure services and Asia-Pacific business pulled the company out of last quarter’s slump.
HCL said yesterday it earned 3.3 billion rupees (US$68.9 million) in net income in the quarter ended June 30, up from US$32.8 million in the same period a year earlier, a 110 percent increase in dollar terms. Revenue was 29.1 billion rupees, up from US$501.7 million a year earlier, a 21 percent increase in dollar terms.
“The past year has been remarkable for us. We have posted industry leading growth while expanding margins at the same time,” chief executive Vineet Nayar said in a statement.
The results, which beat expectations, represent a strong turnaround from last quarter, when profits plunged by nearly half as the company battled foreign exchange losses, lower prices and declining demand from financial services and telecom customers.
HCL’s torrid growth outpaced all its peers. Tata Consultancy Services, India’s largest outsourcing firm, came closest, posting a 22.3 percent increase in quarterly profit. Infosys lagged with a 1.6 percent increase in quarterly profit, while Wipro posted a 13 percent gain.
Nayar said HCL’s recession-beating strategy was to focus on large deals, broad-based growth and to keep investing despite the global downturn.
“At HCL we do not believe recession is an excuse,” he said.
HCL has made four acquisitions since July last year, of which the largest was British consulting firm Axon Group PLC for US$664 million.
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