HCL Tech Q4 profit drops 2.8% to Rs1,783 crore

New Delhi: HCL Technologies Ltd, India’s fourth-largest software exporter, on Monday posted a decline of 2.8% in its net income to Rs.1,783 crore for the three months ended June compared with the year-ago period.

Net sales rose 16.1% to Rs.9,777 crore compared with the same period last year. Sequentially, net profit rose 5.9%, while revenue grew 5.5% over the same period. In dollar terms, net profit was $279 million, an 8.8% decrease over a year ago, on revenue of $1.53 billion, up 9.3%.

In constant currency terms, revenue grew 16% year-on-year over the same quarter last year.

Analysts had been expecting the company to post a consolidated net profit of $284.08 million on revenue of $1.51 billion, according to a Bloomberg poll of analysts. In rupee terms, net profit had been estimated at Rs.1,824.5 crore on net sales of Rs.9,672.9 crore.

HCL saw revenue growth of 3.2% sequentially (in dollar terms) in the June quarter, higher than that of bigger rivals Wipro Ltd and Tata Consultancy Services Ltd (TCS) which reported 1% and 3.5% growth, respectively. Infosys posted a revenue growth of 4.5%.

Last month, TCS, India’s largest software services company, beat analysts’ estimates by posting 9.3% increase in revenue to $4.04 billion over last year, while its quarterly profit rose 6.2% to $898 million from $845 million a year ago. India’s second-largest software services exporter Infosys’ first quarter net profit fell 4.5% sequentially to $476 million, in line with estimates, but dollar revenue in constant currency terms surged 4.4% to $2.25 billion, ahead of forecasts. Wipro, India’s third-largest software services exporter, reported a net income of $344 million in the quarter ended June on the back of 1.1% sequential growth in revenue, which touched $1,794 million.