HCL Tech reported sub 20% YoY growth in U$ revenues to US$ 505 mn (+0.2% QoQ), Rs 23.7 bn (+9.2% QoQ, +38.6% YoY), lower than expectations despite inorganic revenue contribution of ~US$ 7 mn during the quarter.
Operating margins declined by 70 bps QoQ to 21.6%. Net profits (adjusted for ESOP charge) came in at Rs 3.3 bn (+186% QoQ, +18.1% YoY) driven by lower forex losses and higher other income. Revenues from top 5/top 10 clients declined by ~2% QoQ. Onsite Software revenue productivity was down by ~4.5% sequentially.
HCL Tech reported a muted 1% QoQ volume growth in Core S/w (marking the lowest sequential growth in volumes ever). Revenues in Core S/w declining by 0.7% QoQ despite ramp up in a recently awarded telecom deal. For FY09 the company is expected to report an EPS of Rs 21.20 to Rs 21.60.