HCLTech has narrowed the upper end of its full year revenue growth and EBIT margin guidance.
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It now expects revenue growth of 13.5-14 percent from the earlier guidance of 13.5-14.5 percent. Similarly, it also expects full year EBIT margin to be between 18-18.5 percent from 18-19 percent earlier.
At its analyst day last month, the management had warned that the growth for the full year will be at the lower end of the guided range due to higher furloughs in the hi-tech and telecom sectors.
On the positives, HCLTech's EBIT Margin at 19.6 percent was the highest in six quarters. The figure is well above the CNBC-TV18 poll of 18.7 percent and higher by 165 basis points on a quarter-on-quarter basis.
Unlike TCS and Infosys which reported a miss on EBIT margin, HCLTech delivered a positive surprise on that front as well.
The management however said that they expect the margin in the March quarter to be lower than the December quarter. They expect some moderation in Europe as decision making is elongated.
HCLTech reported a net profit of Rs 4,096 crore during the quarter, which was higher than the CNBC-TV18 poll of Rs 3,858 crore.
It also became the third IT company to report a beat on revenue. The company reported a US Dollar revenue growth of 5.3 percent on a sequential basis, compared to an estimate of 3.5 percent. In constant currency terms, HCLTech reported a revenue growth of 5 percent quarter-on-quarter, well above Infosys' 2.4 percent and TCS' 2.2 percent.
The company won 17 large deals during the quarter - seven were for the services business and 10 were for the software division. New deal wins for the quarter stood at $2,347 million, which although up 10 percent from last year, was marginally lower than the $2,384 million it reported during the September quarter.
HCLTech made a net addition of 2,945 employees during the quarter and added 5,892 freshers. The rate of attrition narrowed to 21.7 percent during the quarter, compared to 23.8 percent in September.
