No significant impact of COVID-19 on operations: HCL Tech

HCL Technologies said on Monday that the impact of coronavirus (COVID-19) pandemic on fourth quarter (January to March) results is not expected to be significant.

"While the impact on this quarter's numbers is yet to be quantified, we do not expect it to be significant. Our exposure to the more impacted verticals is not significant. Booking during this quarter has largely been on track as significant part of closures happened in January," it said in a statement.

The company said its business model is a healthy mix of recurring product revenues, managed services and discretionary spend led professional services.

From a vertical perspective, its exposure to verticals like oil and gas, travel and hospitality, high-end retail is in single digits.

"We recognise our investments in risk management systems and processes over the last several years are helping us to minimise the short-term impact and to be adequately prepared for the medium term, if it gets worse," said HCL Technologies.

The company said it has been monitoring the COVID-19 outbreak since late January and had invoked its business continuity plan and risk management framework quite early to minimise the impact on its employees and clients.

"The situation arising out of this outbreak and its rapid spread across the world is unprecedented and is extremely dynamic. The economic impact is visible with varying degrees of intensity across multiple countries where we operate."

As of today, 76 per cent of our India-based employees and 92 per cent of HCL Technologies employees in other geographies are enabled to work from home.

"It is noteworthy that we have not witnessed any outages or major disruption in operations with this newer format of work from home delivery," it said.

HCL reported consolidated revenue of 9.7 billion dollars in calendar 2019 and 1.49 lakh employees operating out of 45 countries.