HCL Technologies - Consolidated Q3 FY2013, March Quarter results - First Cut - Microsec

HCL Technologies Ltd (HCL) announced its consolidated Q3 FY2013, March quarter ending, results on 17 April 2013.

While the company's top line increased 2.4% sequentially to Rs. 6,424 Crores, its bottom line expanded 7.8% sequentially to Rs. 1,039.9 Crores in Q3 FY2013. Although in USD terms HCL reported revenue growth of 3.2%, slight appreciation in Rs. partially shaved off this increase. Additionally, appreciation of home currency led to a 18 basis points (bps) q-o-q decline in EBIDTA Margins to 22.4%. However, led by higher other income and foreign exchange gains, the company was able to report an improvement in net profit margins. Furthermore, in line with its initiatives to provide consistent quarterly returns to shareholders, HCL announced a dividend of Rs. 2 per share for the quarter. The company also announced appointment of Keki Mistry on its board.

As expected, HCL's results once again outperformed its larger peer INFY. We continue to believe that the company may remain outperformer in the sector together with TCS. However, led by steady Rs. vis-à-vis greenback, these stocks as well, may remain just market performers.

Source : Equity Bulls

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