HCL Technologies Ltd. on Friday affirmed its projections for revenue growth in constant currency terms and operating margin for the financial year ending March 2025.
HCL reported a net profit of Rs 4,259 crore for the April-June quarter, compared to Rs 3,995 crore in the preceding quarter, according to its statement to the exchanges.
Revenue of the IT major fell 1.6% over the previous three months to Rs 28,057 crore in the quarter ended June.
Revenue in constant currency terms increased by 5.6% annually but declined by 1.6% sequentially.
"Including the impact, we remain comfortable with our full year revenue and margin guidance as clients spend on Gen AI and other emerging technologies."
HCL Technologies Ltd. on Friday affirmed its projections for revenue growth in constant currency terms and operating margin for the financial year ending March 2025.
The software services provider expects its revenue to rise by 3-5% in constant currency terms during the fiscal year 2024-25 and anticipates its EBIT margin to be 18-19% for the period, according to its statement to the exchanges.
The company's bottom line increased nearly 7% sequentially, exceeding market estimates, driven by gains on divestment. HCL reported a net profit of Rs 4,259 crore for the April-June quarter, compared to Rs 3,995 crore in the preceding quarter, according to its statement to the exchanges. Analysts tracked by Bloomberg had estimated a net profit of Rs 3,846.1 crore.
In April, the company's UK subsidiary divested its entire 49% equity in a joint venture with State Street International Holdings for $172.5 million, or approximately Rs 1,438 crore.
Revenue of the IT major fell 1.6% over the previous three months to Rs 28,057 crore in the quarter ended June. That compares with analysts' consensus estimate of Rs 28,028 crore tracked by Bloomberg.
Revenue in constant currency terms increased by 5.6% annually but declined by 1.6% sequentially. Revenue in dollar terms also decreased by 1.9% sequentially to $3,364 million.
The company shall have planned impact of State Street divestiture in the second quarter of the ongoing financial year, HCLTech's Chief Executive Officer and Managing Director C Vijayakumar said during the quarterly analysts call. "Including the impact, we remain comfortable with our full year revenue and margin guidance as clients spend on Gen AI and other emerging technologies."
