HCLTech expects Q3, Q4 growth to lead industry numbers: CEO C Vijayakumar

economictimes.indiatimes.com:

HCLTech, the country’s third-largest IT services firm, slashed its revenue guidance for the year ahead, but it expects growth to lead the industry numbers by a “big margin” in the third and fourth quarters, chief executive officer C Vijayakumar tells ET.

The lack of discretionary spending across clients through the past two quarters and limited resumption visibility on customer expenditures have been the key factors for slashing organic revenue growth guidance between 4% and 5% in constant currency terms (from earlier 6% and 8%) despite strong growth projections. Edited Excerpts:

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What is the rationale to cut down guidance if you expect growth in the next two quarters?

Our Q1 and Q2 performance was pretty much in line. So if there is one thing which was not in line with what we had anticipated was that discretionary spend where customers initiating new projects reduced in the first two quarters. So that's why you see revenue growth in the first half of the year for us.
However, with the highest booking we delivered in Q2, which is $4 billion, this is almost double that rate in the past. This is going to translate into strong revenue momentum in Q3 and Q4. So, the best way to look at the guidance is, this year how much are we going to grow in Q3 and Q4 and that's going to be a very strong number. And that's what will lead to overall 5- 6% growth for us for the year