HCL Tech Q2 Profit up 0.8 Percent

HCL Technologies second quarter (July–September) consolidated profit grew 0.8 percent sequentially to Rs 2188 crore and has raised its full year dollar revenue guidance but retained constant currency revenue guidance. Consolidated rupee revenue and dollar revenue during the quarter increased 2.3 percent each quarter-on-quarter to Rs 12,434 crore and USD 1928 million.

EBIT (earnings before interest and tax) grew by 0.3 percent to Rs 2451 crore but margin contracted 40 basis points to 19.7 percent compared with the previous quarter. Earnings barring bottom-line missed analysts’ expectations. Profit was estimated at Rs 2143 crore on revenue at Rs 12,572 crore and dollar revenue was expected at USD 1951 million while EBIT was estimated at Rs 2489.3 crore with margin at 19.8 percent for the quarter.

Attrition in IT services (last twelve months) during the quarter stood at 15.7 percent, lower from 16.2 percent seen in the previous quarter. Attrition of the business services segment also declined to 6.3 percent from 6.7 percent on sequential basis. Blended utilization (including trainees) was unchanged at 86 percent for the quarter QoQ.