HCL reports 25.8 percent year-on-year revenue growth in Q1

HCL Technologies (HCLT) has recorded a 25.8 per cent year-on-year (YoY) growth in revenues, said the Indian global IT services company releasing its first quarter results on Wednesday (28 Oct).

It netted in US$630 million for the quarter. Its net income before forex loss was US$97 million, a rise of 5.3 per cent YoY. HCLT's forex loss for the quarter was at US$31 million compared to US$17 million for same quarter last year and US$19 million last quarter.

In the reported quarter, HCL Technologies' maximum average revenues came from US (59.5 per cent) and Europe (28.1 per cent). Asia Pacific contributed only 12.4 per cent.

New wins during this quarter include EFH, American Family Insurance, US Food Service, NetApp and Xerox-XIM among others, reported HCLT.

Commenting on the results, Vineet Nayar, CEO, HCL Technologies said: "We continue to excel. We have had another good quarter recording a revenue growth of 25.8 per cent YoY on the back of 21.0 per cent YoY growth last quarter. At the same time, our margins grew by 26.3 per cent YoY. We have accelerated growth in infrastructure services, custom applications, telecom, media, retail and financial services besides gaining market share in US and Europe. This reaffirms our leadership in these markets and further strengthens our momentum of a broad-based growth. We continue our investments in new services, emerging markets, best in class discrete services and total IT outsourcing coupled with our focus on employee engagement and customer satisfaction which has stood us well."

"Though there are signs of an early recovery in sectors like financial services, we continue to be cautious," said Shiv Nadar, chairman and chief strategy officer, HCL Technologies. "We continue to see sustained recovery only by next year. In the new normal world of changed consumption patterns, new growth drivers, new sources of innovation and new uses of technology, companies will be dealing with a new reality that brings with it moderated growth rates and higher government regulation. HCL is poised to take advantage of the upcoming market opportunities".