HCL Technology’s 3% constant currency growth in revenue in the December quarter was slightly above estimates, as the market was looking at about 2.8% constant currency growth.
Rupee revenue growth was 2.8%, also in line to slightly above estimates. The stock was up 2.8%.
Depreciation of the US dollar meant that the 3% growth in constant currency resulted in a 4% growth in US dollar terms. The euro and pound have appreciated against the dollar in the past quarter.
Infrastructure services, about a third of total revenue, was up 4.8%, BPO 11.4% and the main businesses grew around 1.5%.
The numbers indicate that TCS’s growth may disappoint – as TCS does not have so much of its revenue coming from infrastructure services. On the other hand, HCL has been having issues at its main application business for some time.
Vertical-wise growth — Manufacturing – 4.4%, Public Services –21%, Retail & Consumer – 6%, Telecom/Life sciences — down.
Employee numbers was up by 1136 at 88,332.
Attrition in IT Services was 16.6% on quarter annualized basis.
EBIT grew by 2.4% and net profit was up 5.6%. This was against the widespread expectations of a decline due to salary hikes.