HCL Technologies recorded a 3.2 per cent sequential growth in dollar revenues in the June quarter, meeting marketexpectations. This was better than the 1.1 per cent and 0.5 per cent growth reported by Wipro and Tech Mahindra respectively. However, it couldn’t match TCS’ growth rate of 3.5 per cent. But one parameter where HCL bettered TCS was in the revenue from the US market. For HCL, these revenues recorded sequential growth of 5.1 per cent (in constant currency terms), higher than the modest 0.2 per cent in the March quarter. For TCS, the revenue growth in the US market was 4.4 per cent.
The company’s strong revenue growth in the June quarter was led by improved traction in retail, healthcare, and the consumer and life sciences vertical. Further, revenue from infrastructure management service (IMS) and enterprise system integration recorded strong growth of 5.2 per cent and 4.6 per cent respectively. It added one client in the $40-million plus bucket and two clients in the $30-million plus bucket.
However, like other IT majors, HCL Technologies too saw a drop in margins. Operating margin came in at 21.48 per cent, with higher upfront costs on account of new businesses being a drag.
Attrition rate was 16.5 per cent, marginally higher than the March quarter.