IT services provider HCL Technologies on Friday said it saw a phenomenal ramp up in the software business after it posted a 13 percent rise in its consolidated net profit at Rs 2,944 crore for the December 2019 quarter.
In an interview to CNBC-TV18's Rituparna Bhuyan, C Vijayakumar, president and chief executive officer, said, "In terms of guidance, HCL did fabulously well in the first two quarters and are continuing to do well in this quarter also. Even the organic growth, which was 10-11 percent, that was the guidance we had given last time, now we believe we will be between 10.5 and 11 percent."
Vijayakumar said, "HCL made significant investments in IP and in acquisitions, while we were very confident of our business strategy of investing and growing the software products business, which is a very high margin and very lucrative business, this quarter is a very strong validation that this business model is really delivering. If you see our production platform revenues, quarter on quarter, it has grown some 17 percent, so we have added about 4,600 customers on to our books across all parts of the world."
Prateek Aggarwal, chief financial officer, said, Aggarwal said, "Greatest news about this quarter is actually the cash generation. We have delivered over $700 million of operating cash flow just for the quarter, which translates to free cash flow of about $650 million. So those are very proud numbers and that brings our net-cash balance up to $1.1 billion. Also, we got the S&P Global Rating of A- which is three notches beyond India's sovereign credit rating at BBB-."