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Updated: 17/07/2008 | 12:00 AM IST
HCL Tech reboots on overseas acquisition
Capital Market
Thursday, July 17, 2008 (New Delhi)
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HCL Technologies surged 4.62% to Rs 222 at 9:55 IST on BSE after the company said on Wednesday, 16 July 2008, it has acquired UK based business process outsourcing provider Liberata Financial Services.

The company made this announcement after trading hours on Wednesday, 16 July 2008.

Meanwhile, the BSE Sensex was up 491.70 points, or 3.91%, to 13,067.50 on strong cues from global markets. Asian stocks rallied on Thursday, 17 July 2008, propelled by the biggest surge in US bank shares in 16 years and a sharp drop in oil prices, easing the worst fears about the global credit crisis spiralling out of control.

On BSE, 576 shares were traded in the counter. The scrip had an average daily volume of 2.46 lakh shares in the past one quarter.

The stock hit a high of Rs 222 and a low of Rs 221.95 so far during the day. The stock had a 52-week high of Rs 341.95 on 18 July 2007 and a 52-week low of Rs 180 on 22 January 2008.

The mid-cap company had underperformed the market over the past one month till 16 July 2008, declining 26.33% compared to the Sensex’s decline of 19.88%. It had outperformed the market in the past one quarter, declining 20.02% compared to Sensex’s decline of 23.70%.

The company has an equity capital of Rs 133.27 crore. Face value per share is Rs 2.

The current price of Rs 222 discounts its Q3 March 2008 annualised EPS of Rs 15.82, by a PE multiple of 14.03.

Liberata Financial Services (LFS) provides end-to-end administrative and customer services for the life and pensions industry.

As a part of this acquisition, HCL Technologies will also acquire four delivery centers in UK with strong domain knowledge and technical expertise.

Last week, HCL Technologies announced, that it might incur forex losses between $65-75 million in Q4 June 2008, owing to a sharp fall in rupee against the dollar.

On 11 July 2008, the company secured a three year contract from US based Bergstrom Inc for providing engineering services to its heating, ventilation and air conditioning products.

On 9 July 2008, HCL Technologies formed an alliance with US based Echelon Corporation to bring Echelon’s advanced networked energy services metering systems to India.

HCL Technologies’ net profit fell 1.45% to Rs 263.08 crore on 12.96% increase in net sales to Rs 1275.58 crore in Q3 March 2008 over Q2 December 2007.

HCL Technologies is a global technology and software services company offering software services, business process outsourcing services and infrastructure management services.

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