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    HCL Tech profit drops 7.3%; expects to grow at 1.5 to 2.5% for next three quarters

    Synopsis

    The economic crisis unleashed by the coronavirus pandemic has sevearly impacted the revenues of all Indian IT firms since their global customers have cut down on IT spending and have put several projects on hold.

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    Shiv Nadar would continue to be the Managing Director of the Company with the designation as the Chief Strategy Officer of the Company.

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    New Delhi: HCL Technologies reported a 7.3% drop in net profit at Rs. 2925 crore for the three months ending 30 June 2020 as compared to the same period last year. On a year-on-year basis, the profit was up 31.7%. This came on back of revenues of Rs. 17,841 crore, down 4% sequentially and up 8.6% year-on-year.

    The economic crisis unleashed by the CoronaVirus pandemic has sevearly impacted the revenues of all Indian IT firms since their global customers have cut down on IT spending and have put several projects on hold.

    HCL, which is the third largest software services firm after TCS and Infosys has regained the practise of giving out revenue forecast and said that it expects revenue to increase in the range of 1.5% to 2.5% in constant currency for the next three quarters on a sequential basis. It also said that it expects operating margin to be between 19.5% and 20.5% for FY’21.

    HCL also said that its board of directors has appointed Roshni Nadar Malhotra, Non-Executive Director as the Chairperson of the Board and the Company from July 17, 2020, in place of Shiv Nadar who expressed his desire to step down from the position of the Chairman. Shiv Nadar would continue to be the Managing Director of the Company with the designation as the Chief Strategy Officer of the Company.

    “We are living in unprecedented times where organizations and people across geographies are dealing with challenges related to the pandemic. However, this has also pushed businesses to accept the pandemic as a catalyst for change and look at building agility and resilience into every level of their organization”, said Shiv Nadar, Managing Director and Chief Strategy Officer, HCL Technologies.

    C Vijayakumar, President & CEO, HCL Technologies Ltd. said that HCL is seeing a robust demand environment and a strong pipeline which gives it the confidence in its growth trajectory going forward. “The adverse conditions during this quarter had an anticipated negative impact on our revenue. I am happy to report that the resilience of our operating model helped us deliver stellar operating margins and cashflows. We had healthy bookings enabled by 11 new transformational deal wins. We also renewed several large deals during the quarter."
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