120151716433

#India #manufacturers lag the world in using #IT and leveraging engineering talent #Press #Media @BT_India

We live in an experience economy. That calls for products which not only work but are designed exceptionally well. Are Indian manufacturers geared for this paradigm? We chatted with Chandan Chowdhury, Managing Director of Dassault Systemes India, and Sanchit Vir Gogia, CEO of Greyhound Research.

Media Mentions
group picture copy

#GreyhoundTurns2 – Yes, Time Flies. And How!

As I sit here in Mumbai sipping coffee this morning, I am reminded of my time 2 years ago. All I had to myself (no exaggerations on this one), was a single-man company that of course, found enough and more critiques (you’ll know if you were one of them) who rubbished the need for yet another analyst firm. Fast forward two years to today, most of these critiques are now friends, if not clients yet. And as they say, rest is history.

CEO's Desk

HCL Tech Q4 Net Jumps 53.7%; Sees Strong Growth Ahead #Press #Media #BusinessStandard

Buoyed by strong growth in application and infrastructure services, India’s fourth largest IT solutions firm HCL Technologies Thursday reported a 53.7 per cent surge in its consolidated net profit to Rs 1,834 crore for the fourth quarter ended June 30, 2014.

The company, which follows a July-June quarter, had posted a net profit of Rs 1,193 crore in the year-ago period. Consolidated revenues of the Noida-based firm rose 20.7 per cent to Rs 8,424 crore in the April-June quarter as against Rs 6,980 crore in the same period last year.

“The traction in application and infrastructure services has been strong. It was a strong year for us, we crossed the USD 5 billion revenue milestone and have further evolved the key building blocks to deliver next generation propositions to customers,” HCL Technologies CEO Anant Gupta told reporters.

He added that backed by the solid performance, HCL Technologies remains confident in its ability to continue delivering industry leading growth.

In US dollar terms, HCL Technologies reported a 44.2 per cent rise in net profit for the June quarter to USD 305.4 million, while revenues rose 14.6 per cent to USD 1.4 billion.

Application services revenue grew 7.9 per cent year-on -year in dollar terms, while that from infrastructure services moved up 25.6 per cent for the June 2014 quarter compared to the same period last year.

“HCL Technologies Q4 FY14 results were above our estimates on all front. We like the company’s performance in software vertical. However, ability to maintain its margin post software vertical revenue expansion remains the watchable going-ahead,” Research IndiaNivesh Securities Head Daljeet S Kohli said.

For the full year ended June 30, 2014, its net profit moved up 58.3 per cent to Rs 6,369 crore as against Rs 4,023 crore in the previous fiscal. Revenues rose 27.8 per cent to Rs 32,917 crore during the year as compared with Rs 25,758 crore in FY 2012-13.

HCL said it has signed over 50 transformational engagements with more than USD 5-billion Total Contract Value (TCV) during FY 2013-14.

The company’s scrip was trading at Rs 1553.60 apiece in late afternoon trade, 2.74 per cent below yesterday’s close on the BSE.

“While the broad numbers look healthy and the HCL Tech management looks happy on the outside, the investors are questioning the lopsided growth, i.e heavy reliance on few pillars like infrastructure management services, chosen verticals and geographies,” Greyhound Research CEO and Chief Analyst Sanchit Vir Gogia said.

Talking about growth in quarter ahead, Gupta said there are significant opportunities in the European region as well as in the US market.

“Our pipeline is stronger today than it was at the same time last year. Europe has significant opportunities and there is huge potential in the US too. In RoW, Australia is witnessing good traction,” he added.

Americas accounted for 57 per cent of the company’s revenues, followed by Europe at 30.5 per cent and Rest of World (RoW) at 12.5 per cent.

The firm said it added one client in USD 100-million plus (deal size) category, four clients in the over USD 50-million and 16 clients in more than USD 20 million segment.

Gupta said the company is witnessing good demand for digital services as well as engineering and R&D services.

“We are increasing our focus on security as cyber threats are on the rise and enterprises are concerned. Security will have a big role to play as Big Data grows and the ecosystem of Internet of Things and Machine to Machine communication grows further,” he said.

The firm added 8,442 people (gross) and 1,501 people (net) during the quarter to take its total headcount to 91,691. Its rate of attrition remained unchanged at 16.9 per cent.

Asked about wage hikes, Gupta said onsite employees will be given an increment of 3 per cent, while offshore ones will get 7 per cent increase.

“Our promotion cycle is staggered and begins this month. We expect the total impact of hikes to be about 180 basis points,” he added.

HCL’s cash and cash equivalents, investments and borrowings at the end of June 2014 stood at Rs 1,020.6 crore. “The superior operating performance has been accompanied by efficient working capital management including DSO (days sales outstanding), high conversion of profits into cash and return on equity at historic high of 36 per cent,” HCL Technologies CFO Anil Chanana said.

He added that the company will invest 3-3.5 per cent of its revenue on capital expenditure to upgrade and expand delivery centres and other operational requirements. The company announced dividend of Rs 12 per share, its 46th consecutive quarter of dividend payout.

Source: Business Standard

Media Mentions

HCL Tech Q4 Net Jumps 53.7%; Sees Strong Growth Ahead #Press #Media #NewIndianExpress

Buoyed by strong growth in application and infrastructure services, India’s fourth largest IT solutions firm HCL Technologies Thursday reported a 53.7 per cent surge in its consolidated net profit to Rs 1,834 crore for the fourth quarter ended June 30, 2014.

The company, which follows a July-June quarter, had posted a net profit of Rs 1,193 crore in the year-ago period. Consolidated revenues of the Noida-based firm rose 20.7 per cent to Rs 8,424 crore in the April-June quarter as against Rs 6,980 crore in the same period last year.

“The traction in application and infrastructure services has been strong. It was a strong year for us, we crossed the USD 5 billion revenue milestone and have further evolved the key building blocks to deliver next generation propositions to customers,” HCL Technologies CEO Anant Gupta told reporters.

He added that backed by the solid performance, HCL Technologies remains confident in its ability to continue delivering industry leading growth.

In US dollar terms, HCL Technologies reported a 44.2 per cent rise in net profit for the June quarter to USD 305.4 million, while revenues rose 14.6 per cent to USD 1.4 billion.

Application services revenue grew 7.9 per cent year-on -year in dollar terms, while that from infrastructure services moved up 25.6 per cent for the June 2014 quarter compared to the same period last year.

“HCL Technologies Q4 FY14 results were above our estimates on all front. We like the company’s performance in software vertical. However, ability to maintain its margin post software vertical revenue expansion remains the watchable going-ahead,” Research IndiaNivesh Securities Head Daljeet S Kohli said.

For the full year ended June 30, 2014, its net profit moved up 58.3 per cent to Rs 6,369 crore as against Rs 4,023 crore in the previous fiscal. Revenues rose 27.8 per cent to Rs 32,917 crore during the year as compared with Rs 25,758 crore in FY 2012-13.

HCL said it has signed over 50 transformational engagements with more than USD 5-billion Total Contract Value (TCV) during FY 2013-14.

The company’s scrip was trading at Rs 1553.60 apiece in late afternoon trade, 2.74 per cent below yesterday’s close on the BSE.

“While the broad numbers look healthy and the HCL Tech management looks happy on the outside, the investors are questioning the lopsided growth, i.e heavy reliance on few pillars like infrastructure management services, chosen verticals and geographies,” Greyhound Research CEO and Chief Analyst Sanchit Vir Gogia said.

Talking about growth in quarter ahead, Gupta said there are significant opportunities in the European region as well as in the US market.

“Our pipeline is stronger today than it was at the same time last year. Europe has significant opportunities and there is huge potential in the US too. In RoW, Australia is witnessing good traction,” he added.

Americas accounted for 57 per cent of the company’s revenues, followed by Europe at 30.5 per cent and Rest of World (RoW) at 12.5 per cent.

The firm said it added one client in USD 100-million plus (deal size) category, four clients in the over USD 50-million and 16 clients in more than USD 20 million segment.

Gupta said the company is witnessing good demand for digital services as well as engineering and R&D services.

“We are increasing our focus on security as cyber threats are on the rise and enterprises are concerned. Security will have a big role to play as Big Data grows and the ecosystem of Internet of Things and Machine to Machine communication grows further,” he said.

The firm added 8,442 people (gross) and 1,501 people (net) during the quarter to take its total headcount to 91,691. Its rate of attrition remained unchanged at 16.9 per cent.

Asked about wage hikes, Gupta said onsite employees will be given an increment of 3 per cent, while offshore ones will get 7 per cent increase.

“Our promotion cycle is staggered and begins this month. We expect the total impact of hikes to be about 180 basis points,” he added.

HCL’s cash and cash equivalents, investments and borrowings at the end of June 2014 stood at Rs 1,020.6 crore. “The superior operating performance has been accompanied by efficient working capital management including DSO (days sales outstanding), high conversion of profits into cash and return on equity at historic high of 36 per cent,” HCL Technologies CFO Anil Chanana said.

He added that the company will invest 3-3.5 per cent of its revenue on capital expenditure to upgrade and expand delivery centres and other operational requirements. The company announced dividend of Rs 12 per share, its 46th consecutive quarter of dividend payout.

Source: The New Indian Express

Media Mentions

HCL Tech Q4 Net Jumps 53.7%; Sees Strong Growth Ahead #Press #Media #PTI

Buoyed by strong growth in application and infrastructure services, India’s fourth largest IT solutions firm HCL Technologies Thursday reported a 53.7 per cent surge in its consolidated net profit to Rs 1,834 crore for the fourth quarter ended June 30, 2014.

The company, which follows a July-June quarter, had posted a net profit of Rs 1,193 crore in the year-ago period. Consolidated revenues of the Noida-based firm rose 20.7 per cent to Rs 8,424 crore in the April-June quarter as against Rs 6,980 crore in the same period last year.

“The traction in application and infrastructure services has been strong. It was a strong year for us, we crossed the USD 5 billion revenue milestone and have further evolved the key building blocks to deliver next generation propositions to customers,” HCL Technologies CEO Anant Gupta told reporters.

He added that backed by the solid performance, HCL Technologies remains confident in its ability to continue delivering industry leading growth.

In US dollar terms, HCL Technologies reported a 44.2 per cent rise in net profit for the June quarter to USD 305.4 million, while revenues rose 14.6 per cent to USD 1.4 billion.

Application services revenue grew 7.9 per cent year-on -year in dollar terms, while that from infrastructure services moved up 25.6 per cent for the June 2014 quarter compared to the same period last year.

“HCL Technologies Q4 FY14 results were above our estimates on all front. We like the company’s performance in software vertical. However, ability to maintain its margin post software vertical revenue expansion remains the watchable going-ahead,” Research IndiaNivesh Securities Head Daljeet S Kohli said.

For the full year ended June 30, 2014, its net profit moved up 58.3 per cent to Rs 6,369 crore as against Rs 4,023 crore in the previous fiscal. Revenues rose 27.8 per cent to Rs 32,917 crore during the year as compared with Rs 25,758 crore in FY 2012-13.

HCL said it has signed over 50 transformational engagements with more than USD 5-billion Total Contract Value (TCV) during FY 2013-14.

The company’s scrip was trading at Rs 1553.60 apiece in late afternoon trade, 2.74 per cent below yesterday’s close on the BSE.

“While the broad numbers look healthy and the HCL Tech management looks happy on the outside, the investors are questioning the lopsided growth, i.e heavy reliance on few pillars like infrastructure management services, chosen verticals and geographies,” Greyhound Research CEO and Chief Analyst Sanchit Vir Gogia said.

Talking about growth in quarter ahead, Gupta said there are significant opportunities in the European region as well as in the US market.

“Our pipeline is stronger today than it was at the same time last year. Europe has significant opportunities and there is huge potential in the US too. In RoW, Australia is witnessing good traction,” he added.

Americas accounted for 57 per cent of the company’s revenues, followed by Europe at 30.5 per cent and Rest of World (RoW) at 12.5 per cent.

The firm said it added one client in USD 100-million plus (deal size) category, four clients in the over USD 50-million and 16 clients in more than USD 20 million segment.

Gupta said the company is witnessing good demand for digital services as well as engineering and R&D services.

“We are increasing our focus on security as cyber threats are on the rise and enterprises are concerned. Security will have a big role to play as Big Data grows and the ecosystem of Internet of Things and Machine to Machine communication grows further,” he said.

The firm added 8,442 people (gross) and 1,501 people (net) during the quarter to take its total headcount to 91,691. Its rate of attrition remained unchanged at 16.9 per cent.

Asked about wage hikes, Gupta said onsite employees will be given an increment of 3 per cent, while offshore ones will get 7 per cent increase.

“Our promotion cycle is staggered and begins this month. We expect the total impact of hikes to be about 180 basis points,” he added.

HCL’s cash and cash equivalents, investments and borrowings at the end of June 2014 stood at Rs 1,020.6 crore. “The superior operating performance has been accompanied by efficient working capital management including DSO (days sales outstanding), high conversion of profits into cash and return on equity at historic high of 36 per cent,” HCL Technologies CFO Anil Chanana said.

He added that the company will invest 3-3.5 per cent of its revenue on capital expenditure to upgrade and expand delivery centres and other operational requirements. The company announced dividend of Rs 12 per share, its 46th consecutive quarter of dividend payout.

Source: PTI

Media Mentions

HCL Technologies net profit rises 54%, beats estimates #Press #Media #Mint

The net profit climbs to Rs1,834 crore, while net sales for the reporting quarter rise 21% to Rs8,424 crore

HCL Technologies Ltd, India’s fourth largest software exporter, posted a better-than-expected 54% rise in June quarter profit.

The net profit climbed to Rs.1,834 crore, while net sales for the reporting quarter rose 21% to Rs.8,424 crore. In dollar terms, net income stood at $305 million on the revenue of $1.4 billion.

Analysts were on average expecting the company to post consolidated net profit of $268.209 million on revenue of $1.407 billion for the quarter, according to Bloomberg estimates. In rupee terms, the expected net profit was Rs.1,611.7 crore on the net sales of Rs.8,452.8 crore.

HCL’s current growth trajectory also suggests that it may surpass industry expectations for the current fiscal year, experts said. For fiscal 2014-15, industry lobby Nasscom expects software exports revenue to grow 13-15% in FY15.

“The last quarter has been lukewarm for the industry at large but HCL Technologies has done well in Europe and other key verticals like Public Services and Financial Services,” said Sanchit Vir Gogia, chief analyst and CEO, Greyhound Research. “More specifically, the company has seen growth for its infrastructure management services and has managed to add significant deal wins in the last quarter—earlier this year the company bagged a $500 million contract from PepsiCo. Inc. for infrastructure management services and a $400-million contract from DNB Bank, Norway”

This comes as the country’s top three IT firms post mix results.

Earlier this month, India’s largest software services exporter Tata Consultancy Services Ltd (TCS) reported sharp increases in fiscal first-quarter profit and revenue, beating analysts’ estimates, with net profit rising 45% to Rs.5,568 crore for the June quarter on the revenue of Rs.22,111 crore. India’s second-largest software services exporter, Infosys Ltd, posted a 15% rise in net profit to Rs.2,886 crore on revenue of Rs.12,770 crore, while Wipro Ltd, India’s third largest software firm saw a 30% rise in fiscal first-quarter profit, marginally below analysts’ estimates. Its net profit rose to Rs.2,103 crore while revenue rose to Rs.11,136 crore.

Total contract value of the bookings exceed $5 billion in the year ended June, said the company in the BSE filing. The consolidated profit for the year ended June stood at $1.03 billion on the revenue of $ 5.3 billion. It announced dividend of Rs.12 per share.

Shares of HCL Technologies dropped 15.4% to Rs.1,597.35 on the BSE at 8:56am, while the exchange’s benchmark Sensex rose 0.37% to 26,087.42 points.
Source: Mint

Media Mentions