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HCL Technologies says profit falls on forex loss

HCL Technologies says profit falls on forex loss

Indian software services firm HCL Technologies Ltd. said quarterly profit fell 12.3 percent as foreign exchange losses dented rebounding revenues from the U.S. and from media and financial services clients.
"Though there are signs of an early recovery in sectors like financial services, we continue to be cautious," chairman Shiv Nadar said in a statement Wednesday. "We continue to see sustained recovery only by next year."
HCL's profit, however, beat expectations with earnings of 3.2 billion rupees ($66.5 million)in the July-September quarter under U.S. accounting standards _ $9.3 million, or 12.3 percent, less in dollar terms than the same period last year. Revenue was 30.31 billion rupees ($630.1 million) a 25.8 percent increase in dollar terms over the year-earlier period.
The company said its foreign exchange losses were $31 million for the quarter, up from $17 million the same quarter last year.
Revenue from infrastructure services, and from media, retail, and financial services clients showed the most sequential growth. Revenue from manufacturers slid 8.3 percent in constant currency terms from the prior quarter, while revenue from public sector energy and utility companies slumped 7.3 percent in constant currency from the prior quarter.
The company made 58.7 percent of revenue from the U.S. and 29.0 percent from Europe.
It will pay shareholders a dividend of one rupee ($0.02) per share.
The stock was trading up 1.1 percent, at 323 rupees in midday trade, beating the benchmark Sensex index's 0.3 percent decline.


Updated : 2021-03-09 00:43 GMT+08:00