HCL Technologies (HCLTECH) Q4 99/00 earnings summary

Executive summary

• FY00 software-services revenue rose 45% YoY to Rs.3,997 million; standalone profit after tax increased 98% to Rs.1,999 million.

• Growth reflected more business from existing customers, new customers, higher billing rates, improved utilization and a shift from onsite to offshore delivery.

• Three Software Development Centers achieved CMM Level 4 accreditation; billable headcount rose to 2,268 from 1,343.

Financial highlights

• Standalone total income was Rs.4,517 million, including Rs.521 million of other income; profit before tax was Rs.2,102 million and PAT Rs.1,999 million.

• Standalone administration and other expenses increased 109% YoY to Rs.811 million; cost of software development rose to Rs.1,451 million from Rs.1,312 million.

• US-GAAP consolidated revenue increased to Rs.9,256 million from Rs.7,245 million; operating income reached Rs.1,815 million from Rs.819 million, and net income Rs.2,333 million from Rs.963 million.

• Other income included interest and investment income, including returns on IPO proceeds awaiting deployment; reported standalone tax expense was Rs.103 million.

Outlook and guidance

• Plan: add 3,000 seats in FY01, bringing total capacity to 5,000 by June 30, 2001.

• Expansion focus included Europe, Australasia and Japan to raise their share of revenue; these markets contributed 15% in FY00.

• Research and development focused on software engineering, offshore project management, emerging technologies, and tools and methods to improve quality and productivity.