HCL Tech Q1 net up 7.4 pc to Rs 250 cr, interim dividend at 200%

New Delhi, Oct 16 (UNI) HCL Technologies Ltd today reported a consolidated net profit of Rs 250 crore for the first quarter ended September 30, 2006, up by 7.4 per cent as against Rs 232.78 crore during the corresponding quarter last year.

The Board of Directors of the company have declared an interim dividend of 200 per cent on an equity share of face value of Rs 2 each at Rs 4 per share.

The company's core software and infrastructure services grew by 11 per cent this quarter, registering an increase of 13 per pent in comparison to last year.

Its infrastructure services posted a 17 per cent quarter on quarter increase.

HCL's BPO registered a profitable growth trend this quarter with a revenue increase of 50 per cent YoY from Indian operations.

The quarter also saw the highest ever ramp up in man power with the total employee strength touching the 11,000 mark.

''This kind of hot market has been seen after a long time and couple of key drivers including vendors consolidation, Indian companies issuing RFPs, arrival of technology spending, suggest that it can achieve a sustainable growth,'' HCL Technologies Chairman and CEO Shiv Nadar told reporters here.

The company has been allotted three SEZs and the one coming up at Noida covering 50 acres of land, will begin with 1500 manpower in the first phase. This will help the company in further expansion, Mr Nadar added.

The EBIDTA margin has seen a fall due to increase in wages, Mr Nadar said.

The company has entered into new markets in the current fiscal including China and Korea.

The company's treasury income increased from Rs 27.1 crore in the current quarter from Rs 15.4 crore in the corresponding qurater last year.

Mr Nadar also said during the quarter ended December 31, 2005, the Scheme of Amalgamation of all the wholly-owned subsidiaries of the parent company -- DSL Software Ltd, Shipara Technologies Ltd, HCL Technologies BPO Services Ltd, HCL Technologies (Mumbai) Ltd, Aquila Technologies Ltd and HCL Enterprise Solutions (India) Ltd -- with HCL Technologies Ltd, has been approved by the Delhi and Karnataka High Courts.

The effective date of amalgamation is April 1, 2005, he said.

UNI DKS RA BST2022