‘HCL-T July-Sept. revenue may be higher than expected’

Growth in excess of 3.5% estimated due to ‘strong execution’

HCL Technologies on Monday said it expected the revenue for the July-September 2020 period to grow in excess of 3.5% quarter-on-quarter, “meaningfully better” than the top end of the earlier forecast for the quarter.

In a communique to the exchanges, the company said, “We expect revenue and the operating margin for the current quarter to be meaningfully better than the top end of the guidance we had provided in July 2020.”

Stating that it had seen strong execution during the quarter to date, the firm said revenue growth for the current quarter was expected to exceed 3.5% quarter-on-quarter in constant currency, enabled by momentum across all service lines, verticals and geographies. In July, at the announcement of financial results for the April-June 2020 quarter, the company had forecast revenues to rise quarter-on-quarter by an average of 1.5-2.5% in constant currency for the remaining three quarters. In response to Monday’s announcement, the company’s shares rose 10.% to ₹793.70 per share on the BSE.

“The EBIT% for the current quarter is expected to be between 20.5% and 21%,” the company said, adding that good booking momentum continued this quarter.

“The pipeline continues to look healthy across service lines, verticals and geographies,” HCL said.