HCL Technologies Posts 32 Percent Jump in Quarterly Net Profit

HCL Technologies Ltd, India's fourth-largest software services exporter, posted a 32 percent rise in quarterly net profit, beating estimates, as sales in the Americas, the company's biggest market, rose.

Shares in HCL Technologies, however, fell more than 8 percent on Friday, as the technology outsourcing company's revenue growth of 12.8 percent in dollar terms was below street expectations, stock market dealers said.

For most IT services companies, analysts and investors track the dollar sales numbers as clients oversees get billed in that currency.

HCL earned Rs. 1,873 crores ($303.44 million) in profit in the September quarter, compared to Rs. 1,416 crores last year. Analysts, on average, were expecting the profit to be at Rs. 1,729 crores, as per Thomson Reuters data.

HCL relies heavily on contracts to manage data centres and networks for revenue growth, whereas peers Tata Consultancy Services Ltd and Infosys Ltd earn a greater proportion of revenue from higher-margin software services.

© Thomson Reuters 2014