HCL Tech was ruled by volatility on Monday, falling 13.5% to Rs 135.50 immediately as trading commenced, then later finding some respite.

The scrip of the Shiv Nadar group software company then made its way back to Rs 140.50 (still down 10%). Over 9 lakh HCL Tech shares have been traded so far.

The scrip has seem some kind of recovery through buying support ahead of the results. On Friday, 25 April 2003, just ahead of the results, the stock surged 4.7% to Rs 156.65 on volumes of 13.1 lakh shares. From Rs 139.80 on 10 April 2003, the scrip surged 12% to Rs 156.65 on 25 April 2003.

On a consolidated basis, HCL Technologies has reported a sharp 39% fall in Q3 net profit to Rs 79.85 crore on a 13.8% growth in revenues to Rs 465.81 crore (Rs 4.65 billion).

On a standalone basis, net profit fell 11.7% to Rs 89.42 crore from Rs 101.38 crore (Rs 1.01 billion). The drop in standalone net profit was due to a conspicuous decline in other income, by 69.5% to Rs 13.85 crore from Rs 45.44 crore.

Commenting on the company's performance Shiv Nadar, Chairman, said, "Despite the depressed business sentiment globally, we remain confident about the onset of improved traction in offshore outsourcing. The challenge ahead would be the task of re-engineering traditional cost structures and aligning them with emerging price points for the industry. We will do all that is necessary to revamp our P&L metrics in the coming quarters."

HCL Technologies recently announced that it has secured a framework contract worth up to $160 million (about Rs 768 crore) for its BPO service operations, from BT, one of the world's leading providers of telecommunications services. The largest ever engagement in the BPO space awarded to an Indian company encompasses a range of services and also leverages HCL Technologies' proven experience and expertise in the area of software development. These services will be delivered from a 'next generation contact centre' exclusively set up by HCL Technologies for BT in Noida, but managed by BT managers. The 100% compliant NGCC, amongst a select few in the world, adheres to stringent health, safety and environment norms laid out under UK laws as well as UN GS 18 standards.

One of the key initiatives taken by HCL Technologies has been the proposed merger of the software business of HCL Infosystems with HCL Technologies. The software export business of HCL Infosystems will be de-merged and later merged with HCL Technologies, subject to the receipt of regulatory approvals. The management claims that this will help HCL Technologies consolidate its practices in the area of end-user applications and widen its suite of offerings in the fast growing enterprise solutions space.