Jan-March dollar revenue to take a hit of 280 bps: HCL Tech

Country's fourth largest software services firm HCL Technologies today said its dollar revenue for the March quarter will see an "adverse impact" of 2.8 per cent on strengthening of the greenback against global rivals.
The Noida-based firm said its EBIT (operating earnings) is also expected to be negatively affected by 80 basis points.
During this quarter, the US dollar continued to strengthen against almost all global currencies, HCL Technologies said in a statement.
"Since the company's revenues are derived in multiple currencies and significant costs are incurred in Indian rupee, the revenue and EBIT for the quarter to be reported in dollar, would have adverse impact of about 280 bps and about 80 bps, respectively," it added.

In spite of the adverse impact, the company said it is confident of achieving EBIT (earnings before interest and tax) in the range of 21-22 per cent for the January-March quarter.
HCL Technologies expects to post foreign exchange loss of about USD 5.5 million, covering both cash flow hedges and mark-to-market of the foreign currency assets and liabilities.
"The net treasury income for the quarter is expected to be around USD 32 million, the same level as reported in the previous one," it said.
The company had posted 27.3 per cent rise in net profit at USD 307.2 million, while revenues grew 12.8 per cent to USD 1.43 billion in October-December quarter compared with the same quarter previous year.