HCL plans $230 mn capex, but brokers remain negative on the stock

HCL Technologies, India’s fourth largest software services firm, has a capex plan of $230 million for its current fiscal year ending June, its Chief Financial Officer Anil Chanana told reporters on Tuesday.

Earlier in the day, the company reported a 50 percent jump in quarterly profit to Rs 496.7 crore , but shares fell as much as 7 percent on a cloudy outlook for the sector amid slowing global growth.

The company’s board also declared an interim dividend of Rs 4 per equity share of face value of Rs 2 each, which includes a one time special dividend of Rs 2 per equity share of the company. Under the programme, all employees who are on the company’s rolls as of October 14, 2011, will receive a minimum amount equivalent to 5 shares and a maximum amount equivalent to 10 shares based on years of tenure at HCL. The amount they will receive will be based on the closing price of the company’s shares on the NSE on October 17. The company has budgeted an amount of Rs 25 crore for this initiative, the statement said.

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Sandip Agarwal, an IT Analyst at Antique Stock Broking, said the broking house has been negative on HCL due to wage hikes and an uncertain macroeconomic. " I think there is more problem on the growth side which is much lower than what was expected..so I think the numbers are more disappointing in terms of HCL tech Vs TCS."

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The company’s cash and cash-equivalents stood at Rs 469.4 crore as on September 30, 2011. “While the currency markets continue to be volatile, HCL follows a layered hedging programme to cover its foreign currency exposure,” HCLT CFO Anil Chanana said.

Agencies