HCL Technologies Q1 profit drops 7.3% to Rs 2,925 crore

HCL board has also appointed Roshni Nadar Malhotra as chairperson of the board. Shiv Nadar will continue as the managing director and chief strategy officer of the firm

HCL Technologies reported a 7.3% drop in net profit at Rs 2,925 crore for the three months ending 30 June 2020 as compared to the same period last year.

On a year-on-year basis, the profit was up 31.7%. This came on the back of revenues of Rs 17,841 crore, down 4% sequentially and up 8.6% year-on-year.

The economic crisis unleashed by the Coronavirus pandemic has severely impacted the revenues of all Indian IT firms since their global customers have cut down on IT spending and have put several projects on hold.

HCL, which is the third-largest software services firm after TCS and Infosys, has regained the practice of giving out revenue forecast and said that it expects revenue to increase in the range of 1.5% to 2.5% in constant currency for the next three quarters on a sequential basis. It also said that it expects operating margin to be between 19.5% and 20.5% for FY21.

HCL also said that its board of directors has appointed Roshni Nadar Malhotra, Non-Executive Director as the Chairperson of the Board and the Company from July 17, 2020, in place of Shiv Nadar who expressed his desire to step down from the position of the Chairman.

Shiv Nadar will continue as the managing director and chief strategy officer of the company.

“We are living in unprecedented times where organizations and people across geographies are dealing with challenges related to the pandemic. However, this has also pushed businesses to accept the pandemic as a catalyst for change and look at building agility and resilience into every level of their organization”, said Shiv Nadar, Managing Director and Chief Strategy Officer, HCL Technologies.

C Vijayakumar, President & CEO, HCL Technologies Ltd. said that HCL is seeing a robust demand environment and a strong pipeline which gives it confidence in its growth trajectory going forward.

“The adverse conditions during this quarter had an anticipated negative impact on our revenue. I am happy to report that the resilience of our operating model helped us deliver stellar operating margins and cashflows. We had healthy bookings enabled by 11 new transformational deal wins. We also renewed several large deals during the quarter.” he said.