HCL Technologies Ltd, India's fourth-largest software services exporter by revenue, reported a consolidated net profit of Rs 1,683 crore, down 12.2% sequentially.
On a year-on-year basis, it reported a 3.6% rise in quarterly net profit, lagging street estimates as margins dropped due to currency volatility.
Analysts, on average, had expected the company to report a net profit of Rs 1,815 crore, according to Thomson Reuters data.
The consolidated dollar revenue was flat on a quarter-on-quarter basis at $1,491 million. The rupee revenue fell marginally on a sequnetial basis to Rs 9,267 crore.
HCL Tech's consolidated EBIT was down 10.5% sequentially at Rs 1,977 crore.
"The operating margin metrics and enhanced working capital requirements have impacted our cash flows and are an outcome of our focused investment agenda for enhancing capability build up and delivery dynamics of large engagements,” said Anil Chanana, CFO, HCL Technologies.
HCL Technologies said its EBITDA (earnings before interest, tax, depreciation and amortisation) margin, a key measure of profitability, dropped to 22.5% in the March quarter from 26.7% in the year ago period.
Shares of HCL Technologies dipped almost 10% to Rs 835 on the National Stock Exchange (NSE) in early morning trade.
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