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HCL Tech expects better Q2 revenue than previous forecast

HCL Technologies on Monday said that it expects the revenue and the operating margin for the September quarter to be better than the top end of the guidance provided in July 2020

HCL Tech expects better Q2 revenue than previous forecast

HCL Tech

HCL Technologies on Monday said that it expects the revenue and the operating margin for the September quarter to be better than the top end of the guidance provided in July 2020.

The revenue growth is expected to be led by life sciences and healthcare, telecom and media and financial services verticals. Following this, shares of HCL Tech surged as much as over 9 per cent to a record high of Rs 788.15.

"We have seen strong execution during the quarter to date, and continue to execute to the plan this month," HCL said in an exchange filing. "The revenue growth for the current quarter is expected to exceed 3.5% quarter on quarter in constant currency, enabled by broad based momentum across all service lines, verticals and geographies," it added.

The company expects margins to be between 20.5 per cent and 21 per cent in the quarter.

In Q1FY21, the firm reported Rs 2,925 crore net profit against net profit of Rs 2,220 crore in the April-June 2019 quarter (as per US GAAP). Revenue grew 8.6 per cent to Rs 17,841 crore in Q1 against Rs 16,425 crore in the corresponding quarter last year. EBITDA had jumped 34.30 per cent YoY to Rs 4,566 crore during April-June period against Rs 3,401 crore in the same period last year.

The company had also announced that Roshni Nadar Malhotra will replace her father, Shiv Nadar as the Chairman of HCL Tech in June quarter regulatory filing.

Also read: HCL Tech, TCS, Wipro make India proud! Rank in top 10 global engineering service companies

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