India's HCL profit jumps 43%, shares gain
India's fourth-biggest software services firm, HCL, Tuesday posted a 43 percent jump in quarterly net profit, beating forecasts, thanks to stronger outsourcing demand and a weak rupee.
New Delhi-based HCL Technologies said net profit for the three months to December jumped to 5.73 billion rupees ($112 million) from 4.0 billion rupees a year earlier, according to US accounting standards.
The company's shares jumped as much as 6.45 percent to a month-high of 432.25 rupees after the earnings. Shares finally closed at 424.7 rupees, up 4.61 percent.
The company, which has a July-to-June financial year, said net income rose 25.6 percent in the quarter to $112 million from the same period a year ago.
HCL, controlled by Indian software tycoon Shiv Nadar and whose customers include IBM and Microsoft, added 2,556 employees in the quarter.
Company chief executive Vineet Nayar said the company increased its market share despite a challenging economic environment.
HCL signed 18 large contracts with a total value of more than $1 billion in the quarter.
The earnings come after IT giant Infosys last week cut its revenue outlook in dollar terms for the fiscal year through March, while posting a 33 percent rise in net profit.
(c) 2012 AFP