HCL Technologies Q2 Results: Profit Rises; Margin Guidance Raised

HCL Technologies Ltd.’s quarterly profit rose, surpassing estimates, as constraints led by the coronavirus pandemic eased.

Net profit of the software services provider rose 7.4% over the preceding quarter to Rs 3,142 crore in the July-September period, according to exchange filings. That compares with the Rs 2,983-crore consensus estimate of analysts tracked by Bloomberg.

The company’s revenue increased by 4.2% sequentially—higher than its own mid-quarter guidance of 3.5% growth—to Rs 18,594 crore. Analysts had pegged the top line at Rs 18,376 crore.

• Its margin expanded to 21.6% from 20.5% in the quarter ended June. That’s also higher than its own estimate of 20.5-21.0%, and analysts’ 20.9%.
• Revenue in dollar terms, too, rose 6.4% to $2,507 million, compared with the $2,478-million estimate compiled by BloombergQuint.
• Operating profit rose 9.7% to Rs 4,016 crore.