HCL Technologies Q1 Profit Declines 13.5% At ₹2,220 crore

Noida-based HCL Technologies on Wednesday reported a 13.5% quarter-on-quarter decline in net profit for the April-June quarter. The net profit stood at 2,220 crore as compared to2,568 in the previous quarter.

Sanchit Vir Gogia, CEO of Greyhound Research, said: “The decision by HCL Technologies to acquire software from IBM is part of the company’s attempt to be IP driven and drive growth on the back of it. While in theory this bold move is a step in the right direction and supposed to act as a shot-in-the-arm for HCL, but the ground reality is that these IBM products come with a ton of baggage that can potentially throw a spanner in the works.”

He added that developing and scaling standalone SaaS (software as a service) products will require a net-new approach from HCL Technologies and the one key change that HCL Technologies must bring in, is to appoint country and vertical specific resellers for this new software to ensure it continues to add on the customer base and add to the revenue stream.

[Hindustan Times 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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