HCLTech lifts its annual growth outlook after September results
HCLTech raised the lower end of its annual revenue growth forecast after its July–September results. Revenue growth measured at constant exchange rates is now expected at 2.5–4 per cent. Quarterly profit and deal bookings rose, while management retained its operating margin outlook. Reported rupee revenue increased more quickly than the constant-currency measure.
Economics & Markets··Morning
Annual revenue guidance moves higher
HCLTech, a technology services company, raised its full-year revenue growth guidance after releasing July–September results on October 12. It now expects growth of 2.5–4 per cent at constant exchange rates, compared with 1–4 per cent previously. The operating margin forecast remains 17.5–18.5 per cent.[1], [2]
The services business has a separate growth forecast of 3–4 per cent. These ranges are management’s expectations for the financial year, alongside the completed second-quarter results.[1]
Profit grows faster than constant-currency revenue
Quarterly revenue reached 356.2 billion rupees, up 11.5 per cent from a year earlier and 3 per cent from the preceding quarter. At constant exchange rates, the increases were 2.6 per cent annually and 2.3 per cent quarterly. The constant-currency comparison separates exchange-rate movements from revenue growth.[1]
Net income was 51.32 billion rupees, up 21.2 per cent annually and 11 per cent quarterly. The operating margin stood at 18.2 per cent, including an 84-basis-point impact from restructuring expenses.[1]
Deal bookings rise alongside hiring
New deal wins totalled approximately 3.3 billion dollars, an annual increase of 27 per cent. Advanced AI revenue reached 219 million dollars, rising 28.4 per cent quarterly and 78 per cent annually at constant exchange rates.[1]
HCLTech added a net 6,450 employees, taking headcount to 230,339. Growth varied across businesses: financial services revenue rose 7.1 per cent annually at constant exchange rates, while software revenue fell 11.2 per cent.[1]
