HCL Technologies sounds revenue alarm, expects to be hit by adverse currency impact

NEW DELHI: IT services firm HCL Technologies today said it expects its revenues for the September quarter to be "tepid", impacted by adverse currency movement and issues with a client in the public services vertical.

The country's fourth largest software services firm, which follows a July-June fiscal, will announce its earnings for the July-September 2015 quarter in the fourth week of October.

"The revenue growth is likely to be tepid on account of adverse currency impact; a client specific issue and; skewness in revenue growth due to transition timelines for complex engagements particularly in Infrastructure Services," it said in a filing to the BSE.

For the quarter ended June 2015, the company's revenues stood at Rs 4,465.50 crore, while for FY2014-15 it was at Rs 17,153.44 crore.

The Noida-based firm said during the quarter, revenues to be reported in US dollar would have an adverse impact of 80 basis points on account of sharp depreciation of multiple currencies against the greenback.

"Also, in one of the multi-million multi-year custom application development project being executed for one of the customers in the Public Services vertical by HCL Technologies, certain differences have arisen with reference to the program objectives," it said.

The company added that discussions are on with the customer and it is in the process of disengagement.

"As a matter of prudence, the company is considering reserving up to $20 million this quarter," it added.

Shares of HCL Technologies closed higher by 3.03 per cent to Rs 982.15 apiece on the BSE.