Indian outsourcer HCL reports 67% jump in quarterly profit

July 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: India's HCL profit soars, outlook upbeat

Related Stories

India's HCL profit soars, outlook upbeat

July 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 soars 50 pct but shares dive

October 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 Satyam posts strong profit growth

November 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.

India's HCL profit jumps 43%, shares gain

January 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%

January 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.

Recommended for you

The ethics of robot love

November 25, 2015

There was to have been a conference in Malaysia last week called Love and Sex with Robots but it was cancelled. Malaysian police branded it "illegal" and "ridiculous". "There is nothing scientific about sex with robots," ...

Nevada researchers trying to turn roadside weed into biofuel

November 26, 2015

Three decades ago, a University of Nevada researcher who obtained one of the first U.S. Energy Department grants to study the potential to turn plants into biofuels became convinced that a roadside weed—curly top gumweed—was ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.