HCL Technologies has reported a strong set of numbers for the September quarter. Sequential revenue growth in constant currency terms was 2.8 per cent. In dollar terms, the sequential revenue growth was 1.9 per cent, meeting analyst expectations.
The key positive was the confidence displayed by the company in retaining its full-year revenue guidance at 12-14 per cent. HCL’s management said it won 12 transformational deals during the quarter, with much of it in the BeyondDigital, IoT, and cloud services.
The company added one new client in the $100-million-plus bucket and two new clients in the $40-million-plus bucket. There were two new clients in the $20-million plus basket too.
Revenue from new clients was 6.5 per cent of revenue, up from 4 per cent in the June 2016 quarter and 4.3 per cent in the same quarter last year.
The financial services segment showed a strong 5.6 per cent sequential growth (in constant currency terms) after a drop of 0.1 per cent in revenue in the June quarter. The life sciences and telecom verticals too did better than last quarter. The retail segment continues to do well. It reported a sequential revenue growth of 7.7 per cent (14.5 per cent in the previous quarter).
The US geography saw a sequential revenue growth of 5.5 per cent while revenue from Europe declined 2.1 per cent (in the June quarter there was a 16.9 per cent sequential revenue growth).
Operating profit margins for the quarter was 20.58 per cent, 44 basis points lower than in the June quarter. However, the company has maintained its EBIT margin guidance of 19.5-20.5 per cent.
The stock hit a high of Rs 848 (yesterday’s close Rs 815) post the results and is now at Rs 830, up 1.78 per cent for the day.