India's HCL profit jumps 43%, shares gain

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.

New Delhi-based HCL Technologies said net profit for the three months to December jumped to 5.73 billion rupees ($112 million) from 4.0 billion rupees a year earlier, according to US accounting standards.

The company's shares jumped as much as 6.45 percent to a month-high of 432.25 rupees after the earnings. Shares finally closed at 424.7 rupees, up 4.61 percent.

The company, which has a July-to-June financial year, said net income rose 25.6 percent in the quarter to $112 million from the same period a year ago.

HCL, controlled by tycoon Shiv Nadar and whose customers include IBM and Microsoft, added 2,556 employees in the quarter.

Company chief executive Vineet Nayar said the company increased its market share despite a challenging economic environment.

HCL signed 18 large contracts with a total value of more than $1 billion in the quarter.

The earnings come after IT giant Infosys last week cut its in dollar terms for the fiscal year through March, while posting a 33 percent rise in .


Explore further

India's HCL profit soars 50 pct but shares dive

(c) 2012 AFP

Citation: India's HCL profit jumps 43%, shares gain (2012, January 17) retrieved 15 September 2019 from https://phys.org/news/2012-01-india-hcl-profit-gain.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
0 shares

Feedback to editors

User comments

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