HCL Technologies Q2 net profit up 68.5%, Anant Gupta replaces Vineet Nayar as CEO

HCL

Country's fourth largest software services firm HCL Technologies today beat market estimates with 68.4 per cent jump in quarterly profit, driven by strong growth in infrastructure and financial services verticals.

HCL Technologies' net profit zoomed to Rs 964.7 crore for the second quarter ended December 31, 2012, from Rs 572.7 crore in the October-December quarter of 2011. It follows July-June fiscal year.

The results are in line with those of larger rivals Infosys and Tata Consultancy Services, an indication of pickup in outsourcing deals.

Reacting to the results, HCL Tech shares closed higher by 4.31 per cent at Rs 703.30 on the BSE.

HCL Technologies' revenues stood at Rs 6,273.8 crore during the reported quarter, up 19.6 per cent from Rs 5,245.2 crore in the same quarter of FY12.

"Our growth this quarter was driven by infrastructure and financial services, both growing in excess of 10 per cent sequentially. Six large transformational deals have once again given us a billion dollar booking quarter," newly appointed CEO Anant Gupta told reporters here.

The company today announced that Gupta has been elevated to the position of President and CEO, replacing Vineet Nayar.

He was earlier serving as the President and Chief Operating Officer.

Nayar will continue as Vice Chairman and Joint Managing Director till July 2013 and as Vice Chairman thereafter.

"Vineet Nayar continues to mentor our leadership. He will be involved in key client relationships, a role he has been playing for the last six months," Gupta said.

The tier-I players in the USD 100 billion Indian IT-BPO industry agree that there are early signs of pickup in technology spending but they maintain a cautious outlook.

"The sentiments are positive. What is important is to put money behind those sentiments. We think that the budgets are likely to remain flat. HCL's sentiments are bullish," he said.

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