HCL Technologies Q1 net profit at Rs 2,925 crore

HCL Technologies (HCL Tech), India’s third largest software services exporter, reported 7.3% QoQ fall in its June quarter net profit at Rs 2,925 crore. The company had a profit of Rs 3,154 crore in the March quarter.
The adverse conditions during this quarter had an anticipated negative impact on its revenue.
Shiv Nadar group company witnessed 4% drop in revenue at Rs 17,841 crore versus Rs 18,590 crore reported in previous quarter.

The dollar revenue of the company fell 7.4% at USD 2,356 million versus USD 2,543.4 million, QoQ.
Earning before Interest and Tax (EBIT) was down 5.7% at Rs 3,660 crore versus Rs 3,881 crore, while margin was at 20.5% versus 20.8%, QoQ.
Company’s constant currency (CC) growth was down 7.2%, QoQ.
The Board of Directors has declared an Interim Dividend of Rs 2 per equity share of Rs 2 each of the Company for the Financial Year 2020-21.

HCL Tech expect QoQ revenue to increase by an average of 1.5% to 2.5% in CC for next 3 quarters and expecting operating margin to remain between 19.5% and 20.5% for FY21.
In Q1 FY21, HCL also signed 11 new deals, led by key industry verticals including telecommunication, financial services, manufacturing, life sciences and healthcare.

Meanwhile, the company has appointed Roshni Nadar Malhotra as chairperson of the company w.e.f. July 17, in place of Shiv Nadar who expressed his desire to step down from the position of the chairman.
Shiv Nadar would continue to be the managing director of the company with the designation as the Chief Strategy Officer.

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