Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

HCL Tech Will Reach Out For New Deals By Oct-Nov

HCL Technologies, India's fourth-largest software services exporter, reported a 67.3% rise in quarterly net profit, just shy of expectations, after winning more outsourcing orders amid the global economic uncertainty.

Vice chairman and CEO Vineet Nayar said that though macroeconomic initiators continue to be weak, he remains optimistic on account of vendor churn on account of vendor churn.

He says the opportunity for innovative vendors is "large". However, he added that HCL has not won significant market share from Indian IT vendors.

HCL Tech's total income rose to Rs 5,919.1 crore during the reporting quarter from Rs 4,299.5 crore in the corresponding quarter last fiscal, a rise of 37.7%

Anil Chanana, CFO of HCL Tech said the new spend component of the company is down 20%, while restructuring is up 40%. Chanana said operational efficiencies and fall in the rupee has aided margins.

HCL Tech management said the focus will remain on maintaining momentum than margins. HCL plans to reach out for new deals by October-November. HCL Tech added 8 multi-year, multi-million deals in the June quarter. It grew 2.7% in the US and 7.1% in Europe.

In terms of dollar revenues, Q4 sales jumped 3% to USD 1079.61 million against USD 1048 million in the previous quarter. This is the most important number for IT companies, which earn their revenues in dollar terms.

Shares of the IT major shot up over 6% to Rs 509.50 in early trade in a weak market on the back of strong performance. Over the last few quarters, HCL Tech has inched ahead of its bigger rivals like Infosys and Wipro on the back of strong earnings growth.

HCL Tech