HCL TECH

HCL Tech posted a good set of numbers for Q3FY17. Its net profit grew 2.3 (QoQ) at Rs.2062 crore on a 3% rise in rupee revenue at Rs.11,814 crore. Dollar revenue was up 1% at $1745 million.

The company has retained its FY17 constant currency dollar revenue guidance at 10-12% and maintained EBIT margin at 19.5 to 20.5%. The company has said that acquisitions and IP led partnerships announced after September 2016 are likely to additionally contribute 0.6 to 1% in revenues depending upon date of consummation of Geometric deal. The company’s EBIT came in at 2408 crore, up 4% while margins rose 28 bps to 20.38%.

In terms of geography, revenue from USA rose 2% (QoQ), Europe grew 7% and Rest of World dropped 0.5%.  In terms of verticals, application services segment grew 2%, infrastructure services also by 2% and business segment registered 3% growth. BFSI grew 4.5%, Manufacturing by 8%, Lifesciences & healthcare by 3%, Retail &CPG by 7%, Telecom, media and publishing showed a degrowth of 3% and Public Services by 6%.  

Attrition in IT services fell to 17.9% from 18.36% and that of business services segment from 7.4% to 5.3%.