HCL Doubles Profit in June

One of India's leading software firms, HCL Technologies, announced Tuesday that its net profit surged 110 percent, exceeding forecasts for the company's year-end quarter in June.

HCL's consolidated net profit rose to Rs 330 core ($68 million) for the June quarter, compared to Rs 158 crore ($33 million) of the previous year. During the quarter, the company's revenues soared 21 percent to Rs 2,914 crore ($600 million).

The increasing value of the rupee and income from new deals contributed to its performance for the year-end quarter.

However, HCL did not have a significant deal flow in the fourth quarter, according to a statement by Chief Executive Vineet Nayar in Economic Times of India. He added that the flow would remain weak in the July to September period. The software company signed $1.5-billion worth of contracts in the first three quarters of its accounting year.

Nayar also had a negative outlook for the pricing environment, which he said was still difficult and analysts should expect the worst. He also said that the uncertainty of deal pipelines affects the negative forecasts wherein deal signing has not been strong in the last five months.

On the other hand, HCL's fourth quarter earnings indicated a strong improvement in the midst of price cuts, lower demand from telecommunications and financial services clients, and an appreciating currency. The company's profits almost doubled compared to the previous quarter which was January to March.

HCL said that it would carry on investing in new transactions and acquisitions for a global expansion.