India-based IT services provider HCL Technologies has reported a 12.3% decline in net income to $66.5m for the first quarter 2010, compared to $76m in the same quarter last year. Revenue was up 26% at $630m. Skip related content
During the quarter, EBITDA increased 31% to $143.2m, while diluted EPS declined to $0.39 compared to $0.45 in the same quarter last year. The company’s division HCL Axon also acquired the Enterprise Solutions SAP practice of South Africa-based UCS Group for $7.7m.
The company also formed an alliance with New Zealand-based IT services specialist Optimation to strengthen its footprint in the region. It also formed an alliance with enterprise and mobile software provider Sybase to provide customers with real time operational business intelligence.
HCL said that during the quarter IT services revenue grew 29% to $571.3m, while BPO services revenue grew 4% to $59m. Geographically, the US accounted for 58.7% of total revenue, Europe accounted for 29% and Asia Pacific accounted for 12.3%.
Vineet Nayar, chief executive at HCL Technologies, said: "We had another good quarter, and our margins grew by 26.3% YoY. We have accelerated growth in Infrastructure Services, Custom Applications, Telecom, Media, Retail and Financial Services besides gaining market share in US and Europe. We continue our investments in new services, emerging markets, best in class discrete services and Total IT outsourcing."
