InvestorQ : How do you see the growth reported by HCL Tech in its Sep-20 quarter results?
Juvina Maggie made post

How do you see the growth reported by HCL Tech in its Sep-20 quarter results?

Deepa Salunkhe answered.
11 months ago

HCL Technologies posted solid numbers for the Sep-20 quarter as it managed to outperform the mid-quarter revenue growth guidance provided last quarter due to the boost to performance driven by digital and cloud businesses.

For the quarter ended Sep-20, HCL Tech reported net profits of Rs.3142 crore, registering a growth of 18.5% on a yoy basis. Even on a sequential basis, the numbers were better by 7.4% as better cost management also helped performance.

The all important dollar revenues were at $2.51 billion, growth much better than the original estimate. In rupee terms, the sales revenues were up 4.2% at Rs.18,594 crore. HCL Tech also reported improved OPM at 21.6%, an improvement of 110 basis points.

HCL Tech remained steadfast on its FY21 guidance of 1.5- 2.5% growth in revenue for the third and the fourth quarters. It also guided Operating profit margin between 20% and 21%, an improvement in guidance of almost 100 basis points.

In terms of big deals, there were 15 deals in the quarter across key verticals like life sciences and healthcare, public services, energy & utilities and manufacturing. There has also been a strong growth in the order pipeline for HCL Tech.

Good news also came from the manpower management front. The rate of attrition in the three months fell to 12.2% compared to 14.6% in the previous quarter. This is still higher than the peer group but it is surely getting there.