Q3 results: HCLTech bucks trend, Wipro's woes continue

economictimes.indiatimes.com:

HCLTech, India's third-largest software exporter, bucked the prevailing trend of tepid growth in the $245-billion IT services industry to post better-than-expected numbers in the third quarter of the current financial year.
Its net profit rose 6.2% on year to Rs 4,350 crore for the October-December 2023 period, while revenues rose 6.5% to Rs 28,446 crore. Meanwhile, Wipro — the fourth in the quartet of India's top IT firms — reported a steep 12% year-on-year fall in profits and a 4.4% dip in revenue in what is traditionally viewed as a slow quarter for the technology industry.

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Noida-headquartered HCLTech outperformed its peers — even the country's largest IT firm Tata Consultancy Services- with its financials boosted by the $2.1-billion Verizon deal signed in August last year. It also increased its headcount while rivals TCS and Infosys registered a decline.
The Shiv Nadar-founded company trimmed the upper end of its revenue guidance and maintained status quo in a nod to the prevailing weakness in demand for technology services amid inflationary concerns in the US and Europe.
«The company is very positive about its medium-term growth led by demand from engineering, research and development services,» said C Vijayakumar, CEO of HCLTech while conceding that there has been «little change» in the overall macro environment.
The recent positive commentary by the US Federal Reserve «has not translated into an uptick in client