HCL Tech reports profit rise by 5.9% in Q2 of 2015 but falls 2.8% on YOY Basis

HCL Tech has announced the financial results for the quarter ending June 30, 2015. As per the reports, the company managed to climb to Rs. 1,783 crore at 5.9% in the second quarter; however, the profit slipped 2.8% YOY. The volatility in US and Europe affected the performance of the company badly.

Financial Insights For The Quarter:

Revenues of the company for the quarter were Rs. 9,777 crore, 5.5% higher than the previous quarter. HCL profit was down 8.8% YOY in terms of the dollar.

HCL managed to reach $1.5 billion figure when it comes to US dollar, 3.2% higher than the previous quarter. The profit of the company for the quarter was $279 million, while EBIT was $308.7 million, down 2.8% from the previous quarter and 9.4% YOY. The primary reason for this drop was the bad investment made by the company in the technology field.

The market gave mixed reactions to this result announcement. HCT Tech stock lost 5.24% and hit the lowest mark of Rs. 944.35. It’s the first time in the last one month when HCL has experienced such downfall in intraday trading. In the month of July, HCL Tech rose to 8.2% against the overall growth of 1.2% in Sensex.

Financial Insights For The Year:

The company follows July to June fiscal; therefore, it announced yearly results as well. Total consolidated revenue for the past 12-month period rose 12.6% to Rs. 37,061 crore, while the net profit was up 13.9% to touch Rs. 7,254 crore figure. In terms of US dollar, the revenue was up 11.1% and touched $5.9 billion while the net profit increased 12.2% to $1.1 billion.

The overall increment in revenues, but a dip in net profit of the company is due to the pricing pressure in the global markets. The situation is likely to improve in the coming months.