HCL Technologies recorded a 12% drop in net profit sequentially for the March quarter, missing street estimates as cross-currency movements impacted earnings adversely. The IT major’s net profit during the period stood at Rs 1,683 crore, while it also disappointed on revenue growth which remained flat sequentially.
Commenting on the results, Greyhound Research CEO & Chief Analyst Sanchit Vir Gogia said, it was disappointing to see a flattish growth in revenue and decline in net profit but on positive note the company has been making clear moves from its heavy reliance on infrastructure managed services (IMS) business and focus more on the application services business. “This will be a welcomed breather for investors that have been critical of HCL’s overt reliance on IMS business that attracts smaller margins compared to application services portfolio,” he added.
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