BENGALURU:
HCLTech
remains optimistic about achieving its
revenue growth
of 3% to 5% for
FY25
, despite the absence of a significant increase in discretionary spending and some uncertainties surrounding the timing and nature of the anticipated recovery.
“Traditionally, the June quarter is soft for us, and revenue picks up after that. The same trajectory will follow this year too,” C
Vijayakumar
, CEO of HCLTech, said.
The company saw a 1.6% sequential decline in revenue in constant currency during the June quarter.
The management expressed confidence in meeting its growth forecast, even though revenue was affected by the divestment of its stake in
State Street
HCL Services — a joint venture between the global financial services firm and HCL UK. State Street acquired a 49% stake in the joint venture for $170 million, consolidating its operations in India. HCLTech believes that bringing the State Street HCL Services capabilities in-house will streamline the model, enabling faster decision-making and providing a more effective and efficient experience for its clients. After making a net addition in the March quarter, HCLTech’s headcount dropped by 8,000 in the June quarter, of which, 7,398 were due to the State Street divestment.
The company has set a margin guidance of 18% to 19% for the current financial year, mirroring previous year’s figures. Vijayakumar acknowledged the presence of headwinds in the
financial services sector
, which are expected to continue in the Sept quarter as well. Clients in this sector are increasingly focusing on efficiency-led programs, while discretionary spending remains a challenge. Despite that, HCLTech has observed some revenue from GenAI projects, as companies are increasingly adopting this technology across various initiatives.
Regarding annual increments, HCLTech said that it is still evaluating the matter and has not made any decision for the current financial year.
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