HCL Tech

HCL Tech has proven to be that lone IT company which not only reported a good performance but it also quite optimistic when it comes to the future. For its Q1FY17, the company posted a modest but nevertheless growth of 6% (QoQ) in net profit at Rs.2047 crore. Its rupee revenue was up 6% at Rs.11,336 crore while dollar revenue also rose 6.5% at $1691 million.

Its EBIT rose 5% at Rs.2333 crore though there was not much improvement in margins at 20.58% v/s 20.8%. The company added one client during the quarter under the US$ 50 million category, taking the total tally to 20 and 3 new clients in under US$40 million, increased that total to 32. Its IT services attrition rate rose 50 bps to 17.8% v/s 17.3% (QoQ).

The market was more enthused with its guidance. It expects FY17 dollar revenue to grow in the range of 11.2 to 13.2% and it estimates FY17 EBIT margin at 19.5 to 20.5%.