HCL Tech tops expectations on new markets' growth
* Grows 60 pct outside US, Europe
* Margins improve substantially
* Adds more than 2000 employees in Q2
* Stock surges 6 pct in early trade
(Adds details; stock activity)
NEW DELHI, Jan 19 (Reuters) - Indian software services firm HCL Technologies (HCLT.BO) posted a better-than-expected 34.2 percent jump in consolidated net profit for October-December, aided by strong growth in non-core markets.
Shares in the company surged nearly 6 percent after the results, reaching a 52-week high of 517.50 rupees even as the broader market .BSESN traded flat and BSE IT index was 1 percent lower.
The company reported a net profit of about 4 billion rupees for the period, while revenue rose 28 percent to 38.9 billion rupees. Profit was expected to rose 24 percent to 3.68 billion rupees, according to a Reuters poll of 15 analysts.
The firm also said its business outside the U.S. and Europe, its biggest markets, rose more than 60 percent.
Last week, Infosys Technologies (INFY.BO) sparked concerns about the outlook for India's showpiece outsourcing sector after it missed estimates for profit and future sales growth and warned of sluggish global economic growth, lowering expectations from other IT companies. [ID:nL3E7CD0EY] .
However, Tata Consultancy Services (TCS.BO), India's top software services exporter, on Monday beat forecasts with a 30 percent rise in quarterly profit and said it expected strong demand for outsourcing services, easing the concerns somewhat. [ID:nSGE70G09J]
HCL's gross margins expanded by more than 4 percentage points to 35.7 percent during the December quarter. The improvement comes even as Indian software services companies' margins face a hit from high attrition rates, constant hiring and wage raises.
Net employee addition for the period stood at 2,049, taking the total headcount to 72,267.
Attrition rates at Indian IT firms spiked towards the end of the last financial year as companies loosened IT budgets after the downturn and the resurgence of demand left IT companies scrambling for trained workforce.
(Reporting by Anurag Kotoky; Editing by Ramya Venugopal)
((anurag.kotoky@thomsonreuters.com; +91 11 4178 1024; Reuters Messaging: anurag.kotoky.thomsonreuters.com@reuters.net))
(If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: HCLTECH/RESULTS
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