Indian software services firm HCL Technologies Ltd on Monday said its June quarter profit more than doubled as it won outsourcing contracts from firms seeking to cut costs, and it saw more growth ahead.
"We are quite optimistic on this year. IT outsourcing deals, engineering-based services and remote infrastructure management will continue to drive the growth," Vineet Nayar, president of HCL Technologies, told reporters.
HCL, India's fifth-largest software services exporter, said consolidated net income in its fiscal fourth quarter rose to 4.9 billion rupees ($121 million) from 2.33 billion rupees in year earlier under US accounting rules.
The profit was bolstered by foreign exchange gains of about 2.5 billion rupees on increased currency hedging, Nayar said, adding the company had hedged $1.2 billion of foreign exchange exposures for the next six months.
HCL's revenue grew 28.6 percent to 16.12 billion rupees as it won more contracts in Europe, which accounted for 30.5 percent of its revenue up from 28.8 percent a year ago. Ahead of the results, shares in HCL, which offers IT solutions and back-office services, had fallen 0.64 percent to 317.35 rupees in a Mumbai market that rose 1.0 percent.
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