NEW DELHI, Jan 17 (Reuters) - Indian software services firm HCL Technologies Ltd (HCLT.BO: Quote, Profile, Research) on Thursday posted a 16.4 percent rise in consolidated quarterly profit as it won more outsourcing deals in Europe and Asia-Pacific. The firm, India's fifth-largest software services exporter, has not seen signs of a business slowdown due to economic weakness in the United States, which provided more than half its revenue in the December quarter. "We don't see anything that concerns us," Chief Executive Vineet Nayar told a news conference. "It's business as usual."
HCL, which offers IT solutions and back-office services, said consolidated net income in its fiscal second quarter ended Dec. 31 rose to 3.33 billion rupees ($85 million) from 2.86 billion a year earlier, under the U.S. accounting standards.
The net profit was below the forecast of 3.56 billion rupees by brokerage Motilal Oswal Securities Ltd.
Standalone net income of HCL, based on the outskirts of New Delhi, rose to 2.67 billion rupees in the quarter, up from 2.66 billion a year ago.
Revenue grew 24 percent to 18.17 billion rupees, as HCL added 29 clients during the quarter including a new multi-year deal from Merck & Co Inc (MRK.N: Quote, Profile, Research) to support the drugmaker's key IT initiatives.
Competent workers and comparatively lower wages have helped Indian software services companies like HCL win outsourcing contracts from Western clients, but a strong rupee, soaring wages and prospects of a recession in the United States are concerns.
HCL's bigger rival Tata Consultancy Services Ltd (TCS.BO: Quote, Profile, Research) on Wednesday beat forecasts with a 20.5 percent rise in quarterly profit and said it was confident about growth but there was need for caution. The services firms are rapidly expanding their businesses to Europe, Asia-Pacific and Latin America to reduce their exposure on the U.S. market, which accounts for more than half their revenue. HCL said the United States contributed 55 percent of its revenue in the December quarter, down from 57.3 percent a year earlier. Europe grew to 29.7 percent from 29.2 percent and Asia-Pacific rose to 15.3 percent from 13.5 percent.
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