New Delhi, Oct 23 (IANS) Software major HCL Technologies on Tuesday reported a Rs 2,540 crore consolidated net profit for the second quarter of fiscal 2018-19, registering a 16 per cent annual growth from Rs 2,188 crore in the like period a year ago and 5.7 per cent sequential growth from Rs 2,403 crore a quarter ago.
In a regulatory filing on the BSE, the Noida-based IT major said consolidated revenue for the quarter (Q2) under review at Rs 14,861 crore was 19.5 per cent more annually from Rs 12,434 crore in the same period a year ago and 7.1 per cent sequentially up from Rs 13,878 crore a quarter ago.
Under the International Financial Reporting Standards (IFRS), net income grew 5.1 per cent year-on-year (YoY) to $357 million from $339 million a year ago but was flat (0.3 per cent) sequentially from $356 million a quarter ago.
Gross revenue grew 8.9 per cent YoY to $2,099 million in Q2 from $1,928 million a year ago and 2.1 per cent sequentially from $2,055 million a quarter ago.
The operating margin is expected to be 19.5-20.5 per cent for the fiscal while it was 21 per cent up YoY in Q2 to Rs 2,966 crore from Rs 2,451 crore and 8.7 per cent sequentially from Rs 2,729 crore in rupee terms.
In dollar terms, the operating margin or Ebit (earnings before income tax) was up 9.9 per cent YoY at $417.5 million from $380 million a year ago and 8.7 per cent sequentially from $404 million a quarter ago.
"The company has projected 9.5-11.5 per cent revenue growth in rupee terms and 8.2-10.2 per cent in dollar terms for the entire fiscal (FY 2019) at the September 30 exchange rate of Rs 70.8 per $1," said the outsourcing firm in a statement here.
The company acquired 69 new clients during the quarter to take their total to 1,139 from 1,070 a year ago and 11 sequentially from 1,128 a quarter ago.
"We have added six clients each under $50 million and $20 million, eight under $10 million, 10 under $5 million and 39 under $1 million during the quarter," noted the statement.
The Americas region posted 13 per cent strong annual growth on a constant currency basis with 64 per cent of the company's employees being locals.
"Growth momentum was driven by technology and services at 38 per cent, Life sciences and Healthcare at 13.9 per cent and Retail & CPG at 11.1 per cent on CC basis," said the statement.
Services saw strong demand and healthy growth in technology, telecom and life sciences and healthcare, while global infrastructure services delivered 3.3 per cent sequential growth in constant currency.
"We expect the growth momentum to continue into the second half of the fiscal too," added the statement.
The company's board has recommended interim dividend of 100 per cent or Rs 2 per share of Rs 2 face value for the fiscal.
The company's blue chip scrip of Rs 2 face value, however, lost Rs 27.30 in Tuesday's trading on the BSE to close at Rs 952.75 per share as against Monday's closing rate of Rs 980.05 and opening price of Rs 970. The scrip was also quoted at a high of Rs 982.55 and a low of Rs 948.25 during the intra-trading sessions.
New Delhi, Oct 23 (IANS) The major reason for the crisis being faced by banks is the absence of a developed bond market in the country, the official auditor said on Tuesday.
Speaking at the launch of the Indian School of Public Policy here, Comptroller and Auditor General Rajiv Mehrishi maintained that the root-cause of the banking crisis was neither the scams nor the non-performing assets (NPAs) but a result of state-run banks being constrained to lend for long-gestation projects, many of which had stalled due to various factors.
"Of course, the thefts, the NPAs have all contributed to the banking crisis, but it originates elsewhere...India has no bond market, so banks have been forced to lend for long-gestation infrastructure projects which have then run into trouble," he said.
"The absence of a bond market has been the major cause of the country's banking crisis."
The gross NPAs in the Indian banking system have accumulated to a staggering Rs 10 lakh crore, around 90 per cent of which is accounted for by state-run banks.
"This asset-liability mismatch is due to the lack of debate on public policy in India," the CAG said.
On the various scams in public sector banks that have come to light, the national auditor held the banking regulator Reserve Bank of India responsible for the systemic lapses.
"What was the regulator doing all this time...is he, or is he not, accountable for the lapses that led to the scams," Mehrishi asked.
Industry chamber Assocham said earlier this month that the successful resolution of the NPA issues through the new Insolvency and Bankruptcy Code (IBC) will help deepen India's corporate bond market that is highly concentrated in AAA-rated bonds.
Citing its study jointly conducted with rating agency Crisil, the industry chamber had said: "India's corporate bond market, which contributes 17 per cent to the country's GDP and is highly concentrated in the AAA-rated bonds, is expected to change once the IBC brings about successful resolution of stressed assets in a time-bound manner."
It said that countries like Brazil, Russia, China and the UK had taken steps to reform the bankruptcy laws which, along with other structural reforms, led to a significant growth in the corporate bond market within their financial markets.