HCL Q3 profit up 60 percent on improving margins

The Indian outsourcing firm booked a better than expected third quarter net profit at US$193 million, pushing its share price to a record high.

Indian outsourcer HCL posted an almost 60 percent rise in its third quarter net profit at US$193 million. This beat the US$170 million (9.35 billion rupees) estimates of 16 analysts polled by Reuters.

HCL's better than expected Q3 results push its stock price to a record high.

This was on the back of a 13.6 percent increase in revenue of US$1.2 billion from the previous year.

"We have delivered yet another quarter of strong performance. Our net margins have improved for six straight quarters and are up by 51.5 percent along with a robust 14.6 percent USD constant currency growth for the twelve month period ended March 31, 2013," Anant Gupta, president and CEO of HCL, said in a statement.

HCL added it won over US$1 billion in large multi-year transformational deals.

The results helped its share price rally around 5 percent to a record high at 810 rupees on India's National Stock Exchange.
This was on contrast with rival Infosys, whose Q4 2013 profit dropped 4.1 percent to US$444 million. This saw its share price drop by over 20 percent, to the 2,300 rupee (US$43.10) mark.