Monday, January 16, 2012

HCL TECHNOLOGIES = REASULTS = Q2 ENDING DEC,2011 = REVENUES UP 35% YoY;13% QoQ; NET INCOME UP 43% YoY = GAAP EPS Rs..31.6 = 18 large deals in the Qtr


HCL Technologies Limited
NSE Symbol        HCLTECH
HCL TECHNOLOGIES LTD  has released GOOD RESULTS  for the 2nd quarter ending Dec,2011.

CONSOLIDATED RESULTS

Ø Q2 Revenues at Rs.5,245 crores; up 12.8% QoQ & 34.9% YoY
Ø Net Income at Rs.573 crores; up 43.3% YoY
Ø Announces dividend of Rs.2 per share; 36th consecutive quarter of dividend payout
Ø Gross & Net Employee addition of 7,804 & 2,556 respectively taking total headcount to 83,076

Highlights for the Quarter

(INR convenience translation at an Average Rate of Rs.51.33/US$)

Ø Revenue at  Rs.5,245 crores; up 34.9% YoY & 12.8% sequentially
Ø EBIT at Rs.831 crores; up 62.6% YoY
Ø Net Income at Rs.573 crores; up 43.3% YoY
Ø GAAP EPS (Diluted) at  Rs.31.6; up 45.8% YoY
Ø Announces dividend of Rs.2 per share; 36th consecutive quarter of dividend payout

v  From CY09 to CY 11, HCL Tech consolidated Revenues have grown at the 3 year CAGR of 25.2%.

v  The EBIT has grown from CY 09 to CY 10 at 4.1%YoY, while from CY 10 to CY 11, it has grown at 32.8% (Both in $ Mn terms).

QoQ Revenue Growth
Key Catalysts for Growth

Ø  Revenues grow by 3.7%.
Ø  IT Services Revenue grow by 3.8% and Software Services by 5.3%.
Ø  Americas and Europe grow by 7.3% and 6.3% respectively.
Ø  Positive growth across key Service Offerings led by Enterprise Application Services at 6.5%,
Ø  Custom Application Services at 5.4% and Engineering and R&D Services at 4.0%.
Ø  Infrastructure Services marginally down QoQ and grow 23.1% YoY.
Ø  Broad based strong growth across Verticals led by Healthcare at 16.9%, Retail & CPG at 7.8%,
Ø  Financial Services at 6.1% and Manufacturing at 4.6%
Consolidated Income Statement
Income Statement

ü  Q/E 31-Dec-10 : Corresponding Qtr;
ü  Q/E 30-Sep-11 : Previous Qtr;
ü  Q/E 31-Dec-11 : Current Qtr
ü  Growth :YoY  and QoQ in % terms
ü  Amount in Rs.in Crores

Revenues stand at Rs.3,888.4 Cr in corresponding Qtr; Rs.4,651.3 in previous Qtr and Rs.5,245.2  cr in current Qtr – with a 34.9% Growth YoY and 12.8% Growth QoQ.

Ø  For INFOSYS – the growth in YoY revenues is 30.8% (at Rs.9298 Cr) and the growth in Net profit is 33.3% (at Rs.2372 Cr).

Direct Costs  stand at Rs.2,661.3 in corresponding Qtr ; Rs.3,187.1 in previous qtr; and Rs.3,514.1 in current Qtr.

Gross Profits stand at Rs.1,227.1 in corresponding Qtr; Rs.1,464.2 in previous qtr and Rs.1,731.1 in current Qtr with a YOY growth of 41.1% and QOQ growth of 18.2%

SG & A stand at Rs.592.4 Cr in corresponding Qtr; Rs.669.3 cr in previous qtr and Rs.760.9 in current Qtr.

EBITDA  stands at Rs.634.7 cr in corresponding Qtr; Rs.794.9 Cr in previous Qtr; and Rs.970.2 Cr in current Qtr – with YOY growth of 52.9%; and QoQ growth of 22.1%.

Depreciation stands at Rs.106.2 Cr in corresponding Qtr; Rs. 117.8 Cr in previous Qtr and Rs.127.8 Cr in current Qtr.

EBIT stands at Rs.510.8 Cr in corresponding Qtr ; Rs.664.0 in previous Qtr and Rs.830.7 Cr in current Qtr; with a YoY growth of 62.6% ; and QoQ Growth of 25.1%.

Provision for Tax stands at Rs.103.1 cr in corresponding Qtr; Rs.172.8 Cr in previous Qtr; and Rs.191.1 Cr in current Qtr.

Net Income stands at Rs.399.7 cr in corresponding Qtr; Rs.496.7 Cr in previous qtr; and Rs.572.7 Cr in current Qtr. With YoY Growth of 43.3%; and QoQ Growth of 15.3%.

Ø  For INFOSYS – the growth in YoY revenues is 30.8% (at Rs.9298 Cr) and the growth in Net profit is 33.3% (at Rs.2372 Cr).


Gross Margin stands at 31.6% in corresponding Qtr; 31.5% in previous Qtr and 33.0% in current Qtr.

EBITDA Margin stands at  16.3% in corresponding Qtr; 17.1% in previous Qtr; and 18.5% in current Qtr;

EBIT Margin stands at  13.1% in corresponding Qtr; 14.3% in previous qtr; and 15.8% in current Qtr.

Net Income Margin stands at 10.3% in corresponding qtr; 10.7% in previous qtr; and  10.9%  in current Qtr.

Earnings Per Share (EPS)
Annualized in US $

Basic :Rs.23.6 in corresponding Qtr; Rs.28.8 in previous qtr; and Rs.33.2 in current qtr –with Yoy Growth Rate of 40.6%
Diluted : Rs.23.1 in corresponding qtr; Rs.28.4 in previous qtr; and Rs.32.8 in current Qtr; with YoY Growth of  41.8%

Earnings Per Share (EPS) - GAAP *
Annualized in US $

Basic : Rs.22.1 in corresponding Qtr; Rs.27.8 in previous qtr; and Rs.32.0 in current Qtr; with YoY Growth of 44.7%
Diluted :Rs.21.7 in corresponding Qtr; Rs.27.4 in previous qtr; and Rs.31.6 in current Qtr – with YoY Growth of 45.8%.

Ø  Consolidated IT services revenue has grown ToRs.5007 cr –at a YOY growth rate of 36.6%
Ø  Software services have grown to Rs.3779.7 cr at aYoY growth rate of 36% and QoQ Growth of 14.8%.
Ø  Infrastructure Services has grown to Rs.1227.2 cr at a YoY Growth of 38.5% and QoQ of 7.4%.
.
IN US DOLLAR TERMS

Ø Q2 Revenues at US$ 1,022 mn
Ø Up 3.7% QoQ & 18.7% YoY in constant currency
Ø Up 2.0% QoQ & 18.3% YoY on US$ basis

Ø  Net Income at US$ 112 mn; up 25.6% YoY

Ø  Deals won exceed US$ 1 billion TCV

MILESTONES ACHIEVED
THIS QUARTER

Ø  Deals won exceed US$ 1 billion TCV.
Ø  Customer additions across categories in last 2 years.
Ø  Number of US$ 100 mn+ customers tripled.
Ø  Number of US$ 50 mn+ customers doubled.
Ø  Number of US$ 20 mn+ customers doubled.
Ø  Top 5 and Top 10 customers post sequential growth of 7.7% and 4.9% respectively.

Financial Highlights
Highlights for the Quarter (US$)

Ø  Revenue in constant currency grows 3.7% sequentially

Ø  Revenue at US$ 1,022 mn; up 18.3% YoY & 2.0% sequentially on US$ basis
Ø  EBIT at US$ 162 mn; up 42.6% YoY
Ø  Net Income at US$ 112 mn; up 25.6% YoY
Ø  GAAP EPS (Diluted) at US$ 0.62; up 29.0% YoY
Ø  Announces dividend of ` 2 per share; 36th consecutive quarter of dividend payout
Ø  Gross & Net Employee addition of 7,804 & 2,556 respectively taking total headcount to 83,076

Commenting on the results, Vineet Nayar, Vice Chairman & CEO, HCL Technologies said, “HCL continues to increase its market share both qualitatively and quantitatively by leveraging its multi-service capability. On the existing customer front, our Top 10 clients, all of which are Global\ Fortune 500 companies, have seen a growth of 4.9%, with 2 clients moving into the US$ 100 mn+ category. The Services Adoption Index of these customers is 3.4 out of 5 of HCL’s Service Lines. This combined with 18 new transformational deal wins bears testimony to the uniqueness of HCL’s business model in the current environment”.

“The sequential margin expansion of 150 bps and EBIT and EPS growth of 42.6% and 29.0% YoY respectively in this quarter is a result of our continued investment in business that has resulted in higher returns for our shareholders. Going forward, we remain watchful of the volatile currency movements and will continue with our layered hedging policy”, added Anil Chanana, CFO, HCL Technologies.

• HCL has won 18 multi-year, multi-million dollar deals this quarter excluding HCL contract renewals. The total contract value for these 18 deals exceed US$ 1 billion. These deals pan across all service lines covering sectors like BFSI, Healthcare, Aerospace, MPE, HiTech, Logistics, Telecom, Manufacturing etc. In terms of value, Europe including UK led the list, followed by US and Asia. The customers with whom HCL Tech  signed these engagements include AstraZeneca, BD - a leading global medical technology company and CEVA.

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