BENGALURU (Reuters) -HCLTech, India’s No.3 IT services provider, reported first-quarter revenue in line with analysts’ estimates on Friday.
It reported a 6.7% rise in revenue from a year earlier to 280.57 billion rupees ($3.36 billion). Analysts had estimated revenue of 280.28 billion rupees, as per LSEG data.
The company, which saw a fall in revenue sequentially, had previously said revenue would be impacted by a seasonal factor as well as by work on one of its large deals moving overseas.
Demand for services of Indian IT companies has been impacted by high interest rates and geopolitical risks since FY23, with clients focusing on cost cuts and holding off on discretionary tech spending.
The Noida-based company’s net profit rose 20.57% year-on-year to 42.57 billion rupees for the quarter ended June 30. Analysts, on average, expected profit of 38.22 billion rupees, according to LSEG data.
HCLTech’s new deal wins stood at $1.96 billion, compared with $1.56 billion a year earlier. During the quarter, the company announced a deal expansion with a value of $278 million over 7.5 years with German bank apoBank, as well as a five-year deal with State Bank of India.
Chief Executive Officer C Vijayakumar said the performance was slightly better than its expectations, and is “confident of decent growth in the coming quarters”.
($1 = 83.4970 Indian rupees)
(Reporting by Haripriya Suresh; Editing by Krishna Chandra Eluri)
Comments