HCL Technologies Ltd.’s revenue beat its own forecast for the third quarter, aided by demand for digital services as businesses moved online during the pandemic.
“This solid performance was driven by a robust momentum in our mode-2 and mode-3 businesses led by digital, cloud and products and platform segments. Our results reflect the success of the strategic investments we have made over the years, including unique ecosystem constructs with all cloud hyperscalers, organic and inorganic investments in a broad-based IP and platforms portfolio and an enterprise digital transformation value proposition that is truly integrated and differentiated,” C Vijayakumar, president and chief executive officer at HCL Technologies, said in the filing.
Technology companies saw their costs rise after the Covid-19 pandemic stalled trade and forced employees to work from work. The firms even lost billings as they generate most of their business overseas. The sector, however, rebounded in the second quarter, aided by large deal wins and client spending on cloud computing, artificial intelligence and internet of things as businesses moved online.
HCL Tech’s peers Tata Consultancy Services Ltd., Infosys Ltd. and Wipro Ltd., too, saw a rise in revenue and profit during the reported quarter. While TCS forecast double-digit growth in the next financial year, Infosys raised expectations for the ongoing fiscal. Wipro also upped guidance for IT services revenue in the fourth quarter.
Still, shares of HCL Tech fell 0.3% after the results were announced compared with a flat Nifty 50 Index.
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