HCL Tech issues strong Q2FY21 guidance

Shares of HCL Technologies jumped over 7% to a record high of Rs 776.55 apiece after the firm said it has seen strong execution to date in Q2 FY21. The IT services exporter sees constant currency growth of over 3.5% QoQ and margin of 20.5-21%. It expects revenue and margin to be meaningfully better than the top end of the guidance. The revenue growth in CC terms is enabled by board-based momentum across verticals and geographies.
HCL Tech expects operating margin due to good booking momentum continues this quarter, led by life sciences & healthcare, telecom & media and financial services verticals.

In its earlier guidance given in July, HCL Tech had said that it expects revenue to increase quarter-on-quarter by an average of 1.5% to 2.5% in constant currency for the next three quarters. For operating margin, it had given a range of 19.5% and 20.5% for FY21.

HCL Technologies posted 31.7% rise in consolidated net profit at Rs 2,925 crore for the June 2020 quarter. It registered a net profit of Rs 2,220 crore in the April-June 2019 quarter (as per US GAAP). It’s revenue grew 8.6% to ₹17,841 crore in the quarter.
IT major also announced Roshni Nadar Malhotra replacing her father, Shiv Nadar as the Chairman of HCL Tech in June quarter filing.

HCL Technologies, in August, announced a multi-phase hackathon – The Better Health Hackathon: #CodeforCovid19′ to crowdsource technology innovation to find solutions for immediate and long-term societal impact of the COVID-19 pandemic.

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