HCL Tech Q3 Net Profit Rises 16% To INR 3,037 Crore

Noida-based HCL Technologies on Friday beat estimates to report a net profit of ₹3,037 crores in the December quarter, up 14.6% sequentially and 16.3% year-on-year.
The IT major posted revenue growth of 2.1% q-o-q and 16.4% y-o-y in constant currency terms, delivering a strong 20.2% earnings before interest and taxes (Ebit).

According to analysts, HCL’s numbers look a lot better than its peers. “Despite a difficult quarter and key industries like BFSI slowing down IT spending considerably, HCL Tech has managed to deliver decent performance. The company’s focus on its products and platforms business is impressive and the swell up in partner ecosystem and the overall customer numbers is impressive, ” said Sanchit Vir Gogia, Chief Analyst & CEO, Greyhound Research

Having said that, Gogia added that the company needs to do more to communicate its commitment to code and share more on its plans to invest incrementally in some of the legacy software it has acquired from IBM. “Modernising these IP assets isn’t a matter of choice and much needs to be done in terms of adding code muscle to keep them relevant in the coming times,” added Gogia.

[HT Mint]

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Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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