HCL Technologies Limited
First Quarter Ending
Sep,2013
HCL Technologies has performed very well in the first
quarter ending Sep,2013.
HIGH LIGHTS
|
In Crs
|
Q1
|
QoQ
|
YoY
|
|
Revenue
|
7,961
|
14.00%
|
31.20%
|
|
EBIT
|
1,895
|
31.10%
|
63.60%
|
|
Net Income
|
1,416
|
18.70%
|
63.80%
|
Ø Announces dividend of 2.0 per share, 43
consecutive quarter of dividend
payout
Ø Total headcount at 87,196. Net additions at 1,691
“Against the backdrop of encouraging macro
economic trends, these results cement HCL's position as a company with a strong
and differentiated business model. HCL remains well positioned in both existing
and emerging momentum markets - with exceptionally strong customer
relationships driving sustainable growth,” said Shiv Nadar, Chairman & Chief Strategy
Officer, HCL Technologies.
“YoY growth of 42.8% in net income and 14.1%
in revenues continues the 8 successive quarter of HCL's story of profitable
growth. Our focus on Generation 2 propositions like Enterprise of the Future in
TM ITO and ALT ASM in Application Services continues to drive the company's
quality of revenue,” said Anant
Gupta, President and CEO, HCL Technologies.
“HCL continues to strengthen its
position in the momentum markets of the industry with Europe crossing a
milestone run rate of $ 1.5 bn reflecting a very healthy 23.6% growth YoY.”
“With our layered hedging policy in
place, we have been successful in delivering a Net Margin of 17.8%th for this
quarter, this being the 8 straight quarter of Net Margin expansion. This was
supported by healthy Free Cash Flow to EBITDA conversion of 75% (On LTM Basis).
We maintain our focus on shareholder value creation, and our Return on Equity
remained at a high of
34%," said Anil
Chanana, CFO, HCL Technologies.
QoQ Growth in Constant Currency
Ø Revenue grew by 3.6%
Ø ROW, Europe and Americas grew 8.5%, 1.0% and 4.0%
respectively
Ø Infrastructure Services continued to lead with growth
at 8.8%, followed by Business Services at 1.7%, Engineering and R&D
Services at 1.5% and Application Services at 1.1% respectively
Ø Growth led by Existing Momentum Verticals of Financial
Services & Manufacturing at 6.9% and 5.4% respectively and Emerging
Momentum Verticals of Lifesciences & Healthcare and Public Services at 6.5%
and 3.1% respectively
Ø The company has booked in excess of US$1 Billion
including 9 transformational deals during the quarter
|
Income Stt (In Crs)
|
Quarter
|
ended
|
Growth
|
||
|
30-9-12
|
30-6-13
|
30--9-13
|
YoY
|
QoQ
|
|
|
Revenues
|
6,069
|
6,980
|
7,961
|
31.20%
|
14.00%
|
|
Direct Costs
|
3,931
|
4,426
|
4,858
|
||
|
Gross Profits
|
2,139
|
2,554
|
3,103
|
45.10%
|
21.50%
|
|
SG&A
|
812
|
939
|
1,010
|
||
|
EBITDA
|
1,327
|
1,615
|
2,093
|
57.70%
|
29.50%
|
|
Depreciation
|
157
|
158
|
185
|
||
|
Amortisation
|
12
|
12
|
13
|
||
|
EBIT
|
1,158
|
1,446
|
1,895
|
63.60%
|
31.10%
|
|
Forex Gain/Loss
|
-60
|
29
|
-236
|
||
|
Other Income net
|
35
|
48
|
116
|
||
|
Provision for Tax
|
269
|
330
|
359
|
||
|
Net Income
|
864
|
1,193
|
1,416
|
63.80%
|
18.70%
|
|
30-9-12
|
30-6-13
|
30-9-13
|
||
|
Gross
|
Margin
|
35.20%
|
36.60%
|
39.00%
|
|
EBITDA
|
Margin
|
21.90%
|
23.10%
|
26.30%
|
|
EBIT
|
Margin
|
19.10%
|
20.70%
|
23.80%
|
|
Net Income Margin
|
14.20%
|
17.10%
|
17.80%
|
|
|
Earnings Per Share
|
|||||
|
Annualized in INR
|
30-9-12
|
30-6-13
|
30-9-13
|
YoY
|
|
|
Basic
|
49.84
|
68.52
|
81.22
|
63.00%
|
|
|
Diluted
|
49.12
|
67.61
|
80.12
|
63.10%
|
|
|
|
|||||
As can be seen from the
performance statistics above, HCL tech has performed excellently in the first
quarter ending Sep, 2013.
The current Market
Price is around Rs.1101.At the current annualized EPS of Rs.49.84, the Price
Earning Ratio comes to 22.09.
Considering the current
trend and past performance, HCL Tech is a BUY for Medium to long term
Investors.
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D * * *
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