INDIA BUSINESS WORLD - JANUARY 2006
THE MONTH THAT WAS

HCL TECH REPORTS 40% GROWTH IN Q3

The country's fifth-largest software and services company HCL Technologies today announced a 40% year-on-year growth in its consolidated net profit to Rs 181.1 crore in the quarter ended December 31, 2005 . Total revenue during the period grew 32% to Rs 1,054.2 crore while operating profit, or EBIDTA, was up 29% at Rs 237.7 crore.

Maintaining its quarterly dividend trend, the company announced interim dividend of 200%, or a dividend of Rs 4 per share of face value of Rs 2 each. The results for the quarter December 31, 2005 , are not comparable with those of the previous corresponding periods, pursuant to the amalgamation of HCL's wholly-owned subsidiaries, DSL Software, Shipara Technologies, HCL Technologies BPO Services, HCL Technologies (Mumbai), Aquila Technologies and HCL Enterprise Solutions ( India ), with the company.

Of HCL's three divisions, the fastest growth was registered by its IT infrastructure management division, whose revenue in Q2 (HCL follows July-June fiscal) jumped 80% to Rs 120.2 crore while the division's earning before interest, depreciation, taxes and amortisation (EBIDTA) doubled to Rs 18.1 crore.
The other two larger divisions, software services and BPO services, grew slower at 27.3% and 22.4% respectively. The software services revenue during the quarter was up 27.3% over the same period last year to Rs 800 crore and its EBIDTA grew 22% to Rs 183.2 crore.