Indian outsourcer HCL reports 67% jump in quarterly profit

Jul 25, 2012

India's fourth-biggest outsourcing company, HCL Technologies, reported on Wednesday a 67 percent jump in quarterly net profit from a year earlier as client orders surged.

HCL notched up a net profit of 8.5 billion rupees ($151 million) for the April-June period, its financial fourth quarter, on sales that grew 38 percent to 59.2 billion rupees.

HCL, which has been aggressive in pursuing new business, beat that it would post a profit of around seven billion rupees.

"HCL reported numbers that were ahead of expectation," said Rikesh Parikh, Vice president of Markets Strategy at India's Motilal Oswal Securities.

"Contrary to other IT majors, HCL has been able to win deals and maintain margins," Parikh said.

Shares of the company, India's fourth-largest outsourcer by sales, climbed nearly seven percent to hit a two-month high of 513 rupees on the back of the results.

Earnings of India's biggest , TCS, also beat analysts' estimates earlier this month.

But the country's second and third-largest firms, Infosys and Wipro, are facing headwinds in boosting sales as the downturn in their main US and European markets prompts many customers to go slow on concluding deals.

India's flagship outsourcing sector carries out a wide range of jobs for Western companies, such as answering bank customers' calls, processing and software development.

The country's derive over 85 percent of their revenues from the United States and Europe.

India, with its large less expensive English-speaking workforce, accounts for at least 50 percent of the global outsourcing market.

Explore further: Ahead of Emmys, Netflix already winning online

add to favorites email to friend print save as pdf

Related Stories

India's HCL profit soars 50 pct but shares dive

Oct 18, 2011

India's fourth-biggest software services firm HCL said Tuesday quarterly net profit leapt 50 percent but its shares slid on fears about the global downturn crimping the sector's future growth.

India's HCL profit soars, outlook upbeat

Jul 27, 2011

India's fourth-largest software firm HCL on Wednesday posted a leap of 52 percent in quarterly net profit, beating expectations and giving an upbeat outlook despite global economic uncertainty.

India's HCL profit jumps 43%, shares gain

Jan 17, 2012

India's fourth-biggest software services firm, HCL, Tuesday posted a 43 percent jump in quarterly net profit, beating forecasts, thanks to stronger outsourcing demand and a weak rupee.

India's largest IT firm TCS Q3 profit up 23%

Jan 17, 2012

India's biggest outsourcing company, Tata Consultancy Services, reported on Tuesday that net profit rose 23 percent in the third quarter, matching forecasts, thanks to a rise in orders.

India's Satyam posts strong profit growth

Nov 10, 2011

Indian software outsourcer Mahindra Satyam on Thursday said its quarterly net profit soared more than ten-fold, beating market estimates, as demand for outsourcing grew.

Recommended for you

Ahead of Emmys, Netflix already winning online

6 hours ago

Even if it doesn't take home any of the major trophies at Monday's Emmy Awards, Netflix will have already proven itself the top winner in one regard: Internet programming.

Oregon sues Oracle over failed health care website

17 hours ago

Oregon Attorney General Ellen Rosenblum says she's filed a lawsuit against Oracle Corp. and several of its executives over the technology company's role in the state's troubled health insurance exchange.

Google buys product design firm Gecko

17 hours ago

Google on Friday confirmed that it bought Gecko Design to bolster its lab devoted to technology-advancing projects such as self-driving cars and Internet-linked Glass eyewear.

Ticketfly buying WillCall for on-premise data

Aug 21, 2014

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

Aug 20, 2014

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

User comments : 0