HCL warning on quarter's results

HCL Technologies, the country's fourth largest information technology services company, gave a warning on Wednesday regarding its likely revenue and profit figures for the quarter ending September.

In a filing to the BSE exchange, it stated revenue growth was likely to be tepid on account of client issues, transition timelines for complex engagements and adverse currency impact.

It said some differences had arisen on programme objectives of one of its multi-million multi-year clients in the public services vertical, for which they were implementing a custom application development project.

“While discussions are on with the customer and we are in the process of disengagement, as a matter of prudence the company is considering reserving up to $20 million this quarter,” said the company.

Also, that revenues to be reported in dollars would have an adverse impact of 80 basis points on account of a sharp depreciation of multiple currencies against the dollar.

“We have been cautious about HCL as it’s always the infrastructure management services segments that brings in business. But, if you look at the past few quarters, across the top five-six IT companies, many have reported client-specific issues in every quarter,” said an analyst, on condition of anonymity.

For the earlier quarter, ending June, Tech Mahindra had given a warning for revenue and margin growth due to slow growth in the telecom business and costs for H1-B visas.