HCL Tech's Q1 profit slips 8.2% to `2,230 crore

New Delhi: IT services major HCL Technologies on Wednesday reported an 8.2 per cent fall in consolidated net profit to Rs 2,230 crore for the June quarter, and said it was "cautiously optimistic" about growth in the ongoing fiscal. HCL Technologies' net profit stood at Rs 2,431 crore in the year-ago period, as per the Indian Accounting Standards (Ind-AS). Its revenue from operations rose 18.3 per cent to Rs 16,427 crore in the June quarter from Rs 13,878 crore a year ago.

The company has maintained its forecast of FY2020 revenue growth to be between 14-16 per cent in constant currency terms.

"We have started FY'20 on a very, very strong note with continued revenue momentum. We posted double-digit quarterly year-on-year growth of 17 per cent in constant currency...In terms of incremental revenue added, it comes close to USD 100 million, which is the highest-ever incremental revenue that we have produced," HCL Technologies President and CEO C Vijayakumar told reporters.

HCL Technologies' performance in the June quarter continues to be better than that of rival Wipro that clocked 8.9 per cent rise in revenue from operations to Rs 15,006.3 crore in the June 2019 quarter.

Larger rivals Tata Consultancy Services and Infosys logged a revenue growth of 11.4 per cent (to Rs 38,172 crore) and 14 per cent (to Rs 21,803 crore), respectively.

Pointing to the lower EBIT (earnings before interest and tax), he said the "muted performance" is in line with the investments that the company was making "to ensure that the future growth momentum is maintained".

In December last year, HCL Technologies had inked an agreement to acquire select IBM software products for Rs 12,252 crore (about USD 1.8 billion), including earnouts of Rs 1,035 crore (USD 150 million). The company closed the deal on June 30, 2019.

Also, in March this year, HCL announced the acquisition of US-based Strong-Bridge LLC for USD 45 million.