India's HCLTech beats first-quarter revenue estimates on financial services strength
Tweet
Share
E-mail
FILE PHOTO: An employee arrives for work at HCL Technologies headquarters in Noida, on the outskirts of New Delhi, India, August 28, 2023. REUTERS/Adnan Abidi/File Photo
BENGALURU, July 13 (Reuters) - Indian software services exporter HCLTech beat analysts' expectations for first-quarter revenue on Monday, buoyed by strength in its financial services, technology and retail segments.
The country's third-largest IT services firm posted a 13.94% year-on-year rise in consolidated revenue to 345.79 billion rupees ($3.62 billion) during the April-June quarter. Analysts, on average, estimated revenue of 343.5 billion rupees, according to data compiled by LSEG.
A weaker rupee also boosted revenue for IT firms as they bill clients in foreign currencies. The local currency depreciated by around 9% against the U.S. dollar in the June quarter.
Revenue in constant currency, or stripping out exchange-rate effects, rose 2.6%.
Analysts have lowered their expectations for India's $315-billion IT industry as global clients cut non-essential tech spending and fears mount that advanced AI tools could disrupt software companies' business models.
HCLTech's quarterly net profit rose 20.3% to 46.24 billion rupees, while analysts estimated 45.12 billion rupees.
The company's new bookings stood at $2.4 billion in the quarter, compared with $1.9 billion in the previous three-month period and $1.8 billion a year ago.
Its advanced AI revenue, or revenue it derives exclusively from providing services such as agentic AI and AI engineering to its clients, grew to $171 million from $155 million in the preceding quarter.
Last week, larger rival Tata Consultancy Services also beat quarterly revenue estimates, raising hopes for a gradual earnings recovery for the Indian IT sector.
Shares of HCLTech closed up 4.9% ahead of the results.
($1 = 95.6200 Indian rupees)
(Reporting by Haripriya Suresh in Bengaluru; Editing by Shilpi Majumdar)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies upgrades Shopify to Buy on AI commerce tailwinds, sees 30% upside
- Nio gains after Goldman ups stock to Buy on strong growth, compelling valuation
- JPMorgan Upgrades Tokyo Century (8439:JP) to Overweight
Create E-mail Alert Related Categories
ReutersRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
