The IT services major reported a 2.2 per cent on-quarter rise in consolidated revenues for the quarter to Rs. 20,068 crore, which was slightly below analysts’ expectations.
In constant currency terms, the company’s revenues grew a meager 0.7 per cent sequentially in the reported quarter.
HCL Tech said that it expects its revenues to grow in double digits in the current financial year in constant currency terms. The company also sees its operating margin in the band of 19-21 per cent in 2021-22.
The board of the company approved an interim dividend of Rs. 6 per share.
The deal momentum in the quarter remained firm for the IT services company as the deal book grew 37 per cent on-year to $1.66 billion aided by eight large service deals.
On the operating front, the quarter was tough for the company as consolidated operating profit slumped 5.3 per cent sequentially likely due to the impact of wage hikes. Further, consolidated operating margin shrank 160 basis points on-quarter to 24.5 per cent but was above the company’s full-year guidance of 19-21 per cent.
“We remain very confident of a good QoQ growth for the rest of this year, enabled by 37 per cent YoY growth in bookings and 7,500+ net hiring this quarter”, said C Vijayakumar, chief executive officer at HCL Technologies.
Shares of the IT company ended 0.3 per cent lower at Rs. 1,001.9 on the National Stock Exchange.
