HCL Tech up almost 1% on robust outlook for Q3

NEW DELHI: Shares of HCL Technologies gained close to 1 per cent in early Mumbai trading on Tuesday as the IT services heavyweight said that it retains a positive outlook on products and platform business and sees robust growth in the category in October-December.

At 09:25 hours (IST) the company’s scrip was at Rs 1,233.40, up 0.98 per cent on the National Stock Exchange.

On Monday, HCL’s Chief Executive Officer C Vijayakumar said that some anticipated deal closures in the products business coupled with the current momentum in the services business are seen providing a boost to the company’s third quarter earnings for 2021-22 (Apr-Mar).

HCL witnessed a decline in profits before tax in July-September due to a weakening in products and platforms business. The products business accounts for a tad over a tenth of its overall revenue.

Revenues emanating from services account for 88 per cent of HCL’s top line while platforms and products garner around 11.7 per cent.

India’s third-largest software exporter is preparing for stiff competition in the midst of a huge rise in global spending on IT.