India's fifth largest IT outsourcing company HCL Technologies [Get Quote] on Tuesday reported 3.5 per cent year-on-year increase in net income in the first quarter ending September to Rs 167.5 crore (Rs 1.67 billion) on a consolidated basis.

The gross revenues of the company during the period were up 24 per cent to Rs 970 crore (Rs 9.7 billion).

The company has declared an interim dividend of 200 per cent on every share of the face value of Rs 2.

HCL Technologies won a $100 million plus deal from a global telecom company. It also won two $50 million plus deal with a global bank and a global software product company.

Nadar said the company's large deal strategy is paying-off.

The company has decided to now concentrate on larger deals and would rationalise the number of clients, company president Vineet Nayar said.

"We will complete the smaller projects but we will from now concentrate on larger projects as having less number of clients brings down the sales and marketing costs and ensures greater management attention," company corporate vice president (finance) S L Narayanan said.

The company added 2,195 employees during the quarter to take its headcount to 26,285.

"We will grow 30-40 per cent in the next three to four years," HCL Technologies chairman and chief executive officer Shiv Nadar said at a press conference.

Because of the aggressive hiring, the company's margins fell by two percentage points in the July-September period.

"As the execution of orders start they will show an upward trend," Narayanan said.

In the second quarter, HCL Technologies will add around 2,000 more people.

"Around 1,500 people will be added in the BPO business to service the new contract. The additions will be in Chennai where we have taken space on lease," Narayanan said.

"The company's BPO business grew 44 per cent year-on-year in the first quarter and we will add 1,500 employees in next quarter at our facilities in India, Ireland and Malaysia," HCL's BPO operations head Ranjit Narsimhan said.

"The company is on track in meeting our goal to become a truly global technology and IT services major," Nadar said.

He said the company's transformation initiatives have reached an inflection point and beginning to show results.

"Our focus on emerging services as a growth driver continues. We will continue to gain larger market share in these growth business and use them as a core strategy to drive mega deals," Nayar said.

"This focussed differentiated strategy would result in high growth in coming years as these emerging services become significantly large part of our portfolio of services. Key indicators from these trends are that our revenues from infrastructure services have grown 67.2 per cent and revenues from other emerging services have grown in excess of 50 per cent," he added.