HCL Tech Q2 earnings is a big surprise; deal pipeline looks strong: Ankita Somani, Angel Broking

In a chat with ET Now, Ankita Somani, Research Analyst-IT, Angel Broking, shares his views about HCL Tech Q2 earnings.

ET Now: Are you surprised that HCL Technologies instead of a drop, they have a) reported a expansion in the revenue and b) profits in between quarters have also gone up?

Ankita Somani: Definitely, profitability is a big surprise. On the revenue front, the company has managed to grow by about 3.6% quarter on quarter which is ahead of what TCS grew at. HCL Tech has again surprised positively. We were expecting HCL to grow by 3%, but they have grown by 3.6%. The company has been consistently able to post robust numbers.

ET Now: What have you made of the management changes and how the street is actually going to absorb this news as Anant Gupta has been appointed as the new CEO and Vineet Nayar is going to now take a more non-executive role in the company?

Ankita Somani: Under the leadership of Vineet Nayar also the company was growing but Anant Gupta was actually handling the infrastructure management services portfolio of HCL Tech previously. The portfolio handled by him was actually growing at a higher rate. So, I would read it as a positive change for the company. The deal pipeline of HCL Tech is pretty strong for them to perform well for the next few quarters.