HCL Tech Q2 profit jumps 19.4%, raises FY20 guidance to 15-17%

HCLTECH

Country’s fourth-largest IT company HCL Technologies reported healthy growth in earnings driven by IBM deal, with September quarter profit rising 19.4 percent sequentially and an upward revision in full-year revenue guidance.

Profit during the quarter increased to Rs 2,651 crore, compared to Rs 2,220 crore in June quarter, company in its BSE filing said, adding revenue grew by 6.7 percent quarter-on-quarter to Rs 17,528 crore in Q2.

HCL Tech registered a 5.2 percent QoQ growth in dollar revenue at $2,486 million and constant currency topline growth was 6 percent QoQ.

Company, which acquired select IBM products, raised full-year constant currency revenue growth guidance 15-17 percent from 14-16 percent earlier, but maintained FY20 EBIT margin guidance at 18.5-19.5 percent.

At the operating level, earnings before interest and tax (EBIT) shot up 24.6 percent sequentially to Rs 3,497 crore and margin expanded by 290bps to 20 percent in the quarter ended September 2019.

Operating numbers were ahead of analyst estimates as EBIT was expected at Rs 3,256 crore and margin at 18.57 percent for the quarter, according to estimates of analysts polled by CNBC-TV18.

Meanwhile, HCL Technologies approved the issue of one bonus share for every share held by shareholders.

News Source:- moneycontrol

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