HCL Technologies beats estimates, net rises 9% to Rs 510 cr

The software firm echoed the concerns of some of its peers, warning of tepid demand and cautious spending by customers as its revenues grew 4% to Rs 4,300 crore on a sequential basis for the June 2011 quarter.

By ET Bureau | Updated: Jul 28, 2011, 03.43 AM IST

NEW DELHI: HCL Technologies missed revenue expectations but improved margins to beat net profit estimates. The software firm echoed the concerns of some of its peers, warning of tepid demand and cautious spending by customers as its revenues grew 4% to Rs 4,300 crore on a sequential basis for the June 2011 quarter.

Net profit beat expectations, rising by 9% to Rs 510 crore, aided by prior investments in sales and more work moving to off-shore locations such as India.

Shares of the company fell over 2% on the BSE to Rs 502.85 on Wednesday on BSE as analysts expressed doubts over the company's ability to manage revenue growth, while maintaining profit margins in line with peers.

Traditionally, HCL has been following a strategy of revenue growth over profitability. In its fourth quarter ending June 2011, the IT services provider saw higher revenues from its core areas of strength such as remote management of IT infrastructure for clients, a category where it is an industry leader.

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