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Journalism of Courage
Software firm HCL Technologies has posted 23.3 per cent rise in its net income at Rs 308.4 crore for the first quarter ended September 30, on year-on-year basis on the back of outsourcing contracts and client additions.
The Noida-based company8217;s net income for Q1 was, however, down by 36.6 per cent sequentially owing to a fall in foreign exchange gains from Rs 250 crore in the Q4 to Rs 14.5 crore this quarter.
Revenue for the reporting quarter stood at Rs 1709.2 crore, up 23.9 per cent year-on-year. The company has declared an interim dividend of Rs 2 per share.
The fifth largest software exporter said it has shifted to a new forex gain calculation methodology where the unrealised gains out of hedging has been accounted in the balance sheet instead of profit and loss account in the Q1. By this method, Rs 225 crore has been taken out of the net income which otherwise would have been Rs 533.4 crore Rs 308.4 crore and Rs 225 crore.
The idea behind this re-adjustment is to go for a more conservative calculation where only realised incomes be taken into account. In a separate notice to the Bombay Stock Exchange on Tuesday, the company said its US subsidiary HCL America Inc has acquired the balance 41.9 per cent in HCL EAI Services from other shareholders taking its stake to 100 per cent. The acquisition was for a consideration of Rs 14.3 crore.
The company added 19 new clients during the quarter including a 250 million deal. It added two new multi-service delivery clients. It also reduced its dependence on the US market in Q1 to 54 per cent from 60 per cent a year ago.
The scrip ended down 3.34 per cent at Rs 303 on the BSE.
