HCL Technologies Q1 Results: Profit Misses Estimates, Margin Contracts

Revenue growth at HCL Technologies Ltd. remained muted and profit missed estimates in what is seasonally the strongest quarter for India's $245-billion IT services industry.

The net profit of the technology company fell 11.3% sequentially in the quarter ended June to Rs 3,531 crore, according to an exchange filing on Wednesday. That compares with the Rs 3,830 crore consensus estimate of analysts tracked by Bloomberg.

The company guided for a revenue growth of 6-8% in constant currency terms in fiscal 2024, with margin in the range of 18-19%.

It also guided for service revenue to grow at 6.5-8.5% in constant currency terms in the current fiscal.

• Revenue fell 1.2% to Rs 26,296 crore, as compared with the forecast of Rs 26,884 crore.

• Earnings before interest and tax declined 8.2% to Rs 4,438 crore. Analysts had forecast it at Rs 5,934 crore.

• EBIT margin at 16.9% vs 18.2% and against the estimated 22.1%.

• Revenue in constant currency fell 1.3% to $3,200 million.

The tech giant's value of new deal wins stood at $1,565 million in the first quarter. The pipeline rose 17% sequentially, according to the filing.