HCL Technologies' Q2 consolidated net profit up nearly 16%; stock up 3.17%

HCL Technologies on Friday posted nearly 16% rise in its consolidated net profit for the second quarter (Q2) ended on September 30, 2016.

India's offshore IT and software development outsourcing company's net profit for the July to September quarter increased by 15.9% to Rs 201,560 lakh as  compared to Rs 173,976 lakh in the July to September quarter of last fiscal, HCL Techologies said in a filing to the BSE on Friday. 

The company's total income from operations during the quarter surged up by 14.1% to Rs 1,151,921 as against Rs 1,009,675 lakh in the corresponding quarter of previous fiscal.

Moreover, HCL Technologies' total expenses during the period rose up by 13.12% to Rs 916,795 lakh as compared to Rs 810,451 lakh in the same period of last year. 

At 09:46 hours, the stock of HCL Technologies was trading up 3.17% or Rs 25.85 at Rs 841.10 on the BSE on Friday. 

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Meanwhile, in a separate filing to BSE on Friday, HCL Technologies has said it will acquire Butler America Aerospace, LLC (Butler Aerospace) for $85 million (nearly Rs 565.5 crore). 

"The acquisition will bolster HCL’s capabilities in this space and access to clients with large research and development (R&D) spends. The consideration for the proposed transaction is $85.0 million (nearly Rs 565.5 crore) to be paid in cash," HCL Technologies said in a statement.

Butler America Aerospace is a wholly-owned subsidiary of Butler America LLC and  is a provider of engineering, design services and aftermarket engineering services to US aerospace and defense customers. 

The acquisition deal is expected to be completed by December 31 this year. 

Besides, in its another filing to the exchange on Friday, HCL Technologies said that it has elevated its chief operating officer C Vijay Kumar to the position of the president and chief executive officer of the company with effect from October 20, 2016.

“Vijay has been a transformational leader in the company leading from the front. His vision and flawless execution track record best positions him for taking our journey forward. I wish him all the very best,”  HCL Technologies chairman and chief strategy officer Shiv Nadar, said in a statement.