The Hindu Business Line : HCL Tech likely to post mark-to-market losses this quarter

MUMBAI: HCL Technologies will be posting losses in its mark-to-market exposure this quarter because of a weak rupee, though it would not be significant, a top company official said. “The losses will not be significant,'' HCL Technologies Chief Executive Officer Vineet Nayar told reporters here. This is the second quarter in a row that the company will be posting losses in its mark-to-market exposure. In the last quarter, its MTM losses stood at $69.7 million.

The IT and software development company has hedged $1.9 billion and has a mark-to-market exposure of $600 million, Mr Nayar said. HCL Technologies does a small amount of work for Lehman Brothers, which has filed for bankruptcy. “Our business with Lehman Brothers is less than one per cent,'' he said.

The Indian company has had “minimalist exposure'' to retail banking in North America, which is affected, he said. Many of its clients in North America are insurance companies. It expects its revenues to grow in the media and entertainment verticals, a s egment into which it forayed two years ago. In the past, media and entertainment verticals had grown between 36 and 38 per cent. This vertical is expected to do better this year, he said, though he did not give any figures. Financial services and retai l sectors are under pressure. There is a significant pressure on companies to reduce costs, he said.

The firm is looking at acquisitions, too specifically in the financial, life sciences, telecom, media and entertainment verticals. “We are not in the market to buy any one. The acquisition has to fit into HCL,'' Mr Nayar said. - PTI

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