HCL Tech shares jump nearly 2% after a 3.8% increase in quarterly profit

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HCL Tech shares jump nearly 2% after a 3.8% increase in quarterly profit
HCL Technologies posts surprise increase in quarterly profits in fourth quarterBCCL
  • Revenue growth, in constant currency terms, was up 0.8%.
  • For the fiscal, IT & Business Services grew at 12.7%, the ERS business grew 12.8% and Products & Platforms grew at 60.5%, in constant currency
  • Operating margin came in at 20.9% for the Jan-March quarter.
  • The company has proposed a final dividend of ₹2 per share on double the number of shares after the 1:1 bonus issue.
HCL Technologies share price jumped nearly 2% after the Indian IT services giant clocked a 3.8% growth in fourth-quarter profit compared to the preceding three months before settling into a slump again. The revenue growth was up 0.8% at $2.5 billion in constant currency terms.

HCL Tech shares jump nearly 2% after a 3.8% increase in quarterly profit
HCL share price over the past weekBSE/FlourishBI India

The Jan-March 2020 growth at HCL Technologies is the best among the top five tech majors in India.

CompanyNet profit growth in Jan-March 2020
HCL Technologies3.8%
Infosys-2.9%
Tata Consultancy Services (TCS)-3.6%
Wipro-5.3%
Tech Mahindra-32%

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President and CEO of HCL Technologies C Vijayakumar said the growth was largely fueled by the company’s impetus on digital, cloud, cybersecurity and Internet of Things (IoT) solutions.

The company also posted operating margins of 20.9% which is the highest that they’ve seen since March 2015, according to the company. “FY20 has been a landmark year, where we witnessed our highest growth in recent years and industry-leading performance for the fourth consecutive year,” said Vijayakumar.

HCL signed 14 deals between January and March 2020 in telecom, hi-tech, retail & CPG, manufacturing and financial services, the company statement said. The company added 1,250 employees in the same period, taking its overall full-time employee headcount to 150,423.

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“The company proposed a final dividend of ₹2 per share on double the number of shares post 1:1 bonus issue,” the statement added.

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