HCL To Acquire German E-Mobility Tech Provider ASAP Group For Rs 2,300 Crore, Shares Up 1 Per Cent

HCL's consolidated net profit at Rs 3,534 crore in the April-June period

HCL Technologies has signed a definitive agreement to acquire 100 per cent stake in ASAP Group, a German automotive engineering services provider, for EUR 251.1 million (about Rs 2,300 crore), according to a BSE filing. The acquisition is likely to be completed by September 2023 through an all-cash deal via the company’s UK subsidiary, subject to regulatory approvals, the filing said.

Shares of HCL Tech on Thursday morning climbed over 1 per cent after the company reported a 7.6 per cent year-on-year (YoY) rise in its June quarter net profit on the back of new order wins. The stock recovered all its early lost ground and gained 1.31 per cent to Rs 1,124.70 on the BSE. At the NSE, it climbed 1.24 per cent to Rs 1,124.40 after falling in initial trade.

HCLTech aims to expand its capabilities in the automotive engineering services segment, particularly in e-mobility, autonomous driving and connectivity in Europe, Germany and other global markets, it stated. "Core engineering is at the heart of HCLTech’s DNA and it truly differentiates our services portfolio. ASAP has developed some exciting capabilities in automotive engineering, and we share their vision for the future of mobility. This agreement will enable us to scale these capabilities and innovations across our global network,” Corporate Vice President, Engineering and R&D Services at HCLTech, Hari Sadarahalli said.

Headquartered at Ingolstadt, ASAP Group was founded in 2010 and services top automotive original equipment manufacturers (OEM) and tier-1 suppliers in Germany, alongside companies in software, consulting, electrics/electronics, service testing and validation and vehicle development. 

On Wednesday, HCL's consolidated net profit at Rs 3,534 crore in the April-June period was up from Rs 3,283 crore, in the same period a year back, according to a stock exchange filing.

On a quarter-on-quarter (QoQ) basis, its net profit fell 11 per cent when compared to Rs 3,983 crore earnings in the January-March period. The company's revenue at Rs 26,296 crore was down 1.2 per cent QoQ but up 12.1 per cent YoY. On a constant currency, revenue was down 1.3 per cent quarter-on-quarter but up 6.3 per cent year-on-year. HCL said it won 18 large deals, 7 in services and 11 in software, during the June quarter.