After the damp squib numbers of Infosys, one did not have too much expectation from HCL Tech. Yet those who had made estimates, were pleasantly surprised to see that its third quarter ended numbers exceeded all these predictions. For Q3 ended 31^st March 2013, the company posted a 73% (YoY) rise in net profit at Rs.1040 crore. Might be more of a lower base effect as sequentially, the rise was just 8%. Its revenue was up 23% (YoY) at Rs.6425 crore. QoQ, the rise was much smaller at 2%. EBIT was up 56% (YoY) and just 3% (QoQ). Its EBIT margin remains healthy at 19.9%, a tad bit shy of 20%.

Growth mainly happened in healthcare, which was up 56%, retail was up 19%, media and publishing rose 15% and financial services rose 11%. Its main geographies – Europe rose 18% and America by 13%. This performance of HCL should to some extent reassure the markets post the pessimistic numbers of Infosys, especially its guidance for FY14 which was much lower than estimates of even NASSCOM. The market was obviously enthused with the numbers and it hit a new 52-week high today at Rs.809 though the appreciating rupee and the general disdain for the sector has pulled down the price. The first draft of the US immigration bill too does not bode too well for the Indian IT sector.