HCL Tech net jumps 68%

New Delhi, Jan. 17: Software services major HCL Technologies today beat estimates with a 68.4 per cent jump in net profit for the quarter ended December 31, while joining Infosys and Tata Consultancy Services in signalling a pick-up in outsourcing.

Net profit rose to Rs 964.7 crore during the quarter from Rs 572.7 crore in October-December 2011, driven by a growth in infrastructure and financial services.

"Our growth this quarter was driven by infrastructure and financial services, both growing in excess of 10 per cent sequentially," Anant Gupta, who today replaced Vineet Nayar as the CEO and president, said.

The good performance augurs well for outsourcing spending as financial clients are among the largest spenders on technology, globally. Infrastructure refers to managing the large banks of computer servers, networks and the software they run on.

HCL Technologies has declared an interim dividend of Rs 2 per share of a face value of Rs 2 each. The dividend will be paid on January 31.

Revenues rose 19.6 per cent to Rs 6,273.8 crore from Rs 5,245.2 crore in the year-ago period.

The company, whose customers include Freescale Semiconductor and Finmeccanica, won six large contracts and added 2,118 employees during the quarter.

Shares of HCL today surged 7 per cent to touch a one-year high level of Rs 720.90 on the BSE before closing at Rs 703.30.

Research firm Gartner expects spending on IT services to grow 5.2 per cent to $927 billion in 2013 from 1.8 per cent in 2012.

Meanwhile, Vineet Nayar will continue to be the vice-chairman after Gupta's elevation to the position of the CEO and president.

This is the second CEO transition at HCL Technologies after the company's billionaire founder Shiv Nadar handed over the baton to Nayar in 2007. Speculations were rife about Nayar's exit after he sold his entire stake in June.

Gupta, 44, who has been with the company for the past 19 years, was serving as the president and chief operating officer.

He is credited with building the infrastructure division, in which the company manages the technology resources of global customers, into an over $1 billion business.

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