HCL Tech’s Q1 net profit drops 7.6% to ₹2,220 crore

Our Bureau New Delhi | Updated on August 08, 2019 Published on August 07, 2019

Representative image   -  REUTERS

IT services firm to pay dividend of ₹2 per share

HCL Technologies has reported a 7.6 per cent decline in net profit for the first quarter ended June 30, 2019. Net profit fell to ₹2,220 crore from ₹2,403 crore in the comparable previous quarter.

The company has announced a dividend of ₹2 per share.

Revenue up

HCL reported an 18.4 per cent year-on-year increase in revenue, at ₹16,425 crore for the quarter (₹13,878 crore). For FY20, the company said it expected revenue to grow 14-16 per cent in constant currency terms.

HCL completed the previously announced $1.8-billion acquisition of select IBM products for Security, Marketing, Commerce and Digital solutions on June 30, a statement from the company said. It also completed the acquisition of Strong-Bridge Envision (SBE) on April 1.

“With our current momentum, we aspire to register industry-leading organic growth in FY20. While our margins this quarter were muted in line with our investment strategy to leverage future growth opportunities, I am confident that our time-tested operating model will deliver margins within our guided range this year,” said C Vijayakumar, President and CEO, HCL Technologies.

Shares of HCL Technologies closed at ₹1,022.3 on the BSE on Wednesday, down 0.2 per cent.

Published on August 07, 2019
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