HCL Technologies (HCLTech) is expected to report single digit growth in both net profit and revenue for the second quarter ending September 30, say analysts.
The company’s constant currency revenue growth is seen at 1.3 per cent, as compared to the negative 1.3 per cent it reported in the first quarter (Q1).
During Q1, the company sustained its growth momentum in a challenging global macro environment, and reported revenue of Rs 26,296 crore, up 12.1 per cent year-on-year (YoY), as compared with Rs 23,464 crore in the corresponding period last year, and down 1.2 per cent quarter-on-quarter (QoQ).
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Net profit also jumped by 7.64 per cent YoY in Q1 to Rs 3,534 crore, as compared with Rs 3,283 crore in the April-June quarter in 2022.
According to analysts, the July-September quarter would include an inorganic contribution of 0.4 per cent to revenue growth from its acquisition of German automotive engineering services provider ASAP.
Analysts said net new deals for the quarter are likely to be high, aided by the $2.1-billion deal announced with Verizon, which will be spread over six years, and will start contributing from November this year.
Apart from Verizon, the company also announced some more deals, including signing of an exclusive preferred professional services agreement with Cloud Software Group for TIBCO Solutions, across the globe.
In September, it had signed a multi-year managed public cloud services agreement with German technology and high-tech industry giant Siemens AG to modernise its IT landscape worldwide, and power cloud-led digital transformation.
HCLTech’s shares closed at Rs 1,245.75 apiece at the BSE on Wednesday, down 1.24 per cent from the previous close.
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Published on October 12, 2023
