HCL Consolidated Q4 FY2013 and FY2013 Results - First Cut - Microsec

HCL Technologies Ltd (HCL) announced its consolidated Q4 FY2013 and FY2013, June Quarter, results on 31 July 2013. Both, the company's top line and bottom line came above Bloomberg consensus estimates.

While the company's top line increased 8.1% sequentially to Rs. 6,944.2 Crores, its bottom line expanded 16.3% q-o-q to Rs. 1,209.6 Crores in Q4 FY2013. Growth in HCL's top line was driven by strong incremental revenues across Americas and Europe regions, and depreciating local currency versus US Dollar. Additionally, among the business verticals, Infrastructure services remained the key contributor with 13.8% sequential increase in revenues. Apart from healthy growth in revenues, contained SG&A costs aided to expansion of HCL's EBIDTA margins, which expanded 105 basis points q-o-q to 23.5% during the quarter. In addition to improvement at EBIDTA level, a slight increase in Foreign Exchange Gains helped the company report 16.3% sequential jump in bottom line. On yearly basis as well, HCL reported a strong performance with 22.4% increase in Revenues and 62.3% jump in Net Profit. Moreover, the company announced a final dividend of Rs. 6.0 per share for the quarter, which was its 42nd consecutive quarterly dividend.

HCL along with TCS has maintained its outperformance within the IT sector for last several quarters. With this, these two stocks remain our preferable picks in the sector. Furthermore, we believe that the depreciating Rs. could keep supporting these companies' performance, going forward.

Source : Equity Bulls

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