HCL Technologies shares tumble 7% after Q3 internet revenue dips

Shares of HCL Technologies on Monday tumbled 7 per cent after the corporate reported a 13.6 per cent fall in internet revenue for the December 2021 quarter.
The inventory tanked 6.99 per cent to Rs 1,244 on the BSE.
At the NSE, it declined 7 per cent to Rs 1,243.40.
IT agency HCL Technologies on Friday reported a 13.6 per cent fall in internet revenue to Rs 3,442 crore for the December 2021 quarter and stated it expects to see a robust deal pipeline on the again of a sturdy demand setting.

The firm had logged a internet revenue of Rs 3,982 crore within the October-December 2020 quarter (as per US GAAP).
Its income grew 15.7 per cent to Rs 22,331 crore in December 2021 quarter from Rs 19,302 crore within the year-ago interval.
The firm defined that the revenue after tax (PAT) within the third quarter of FY21 was greater by USD 59.4 million (Rs 438 crore) as a result of reversal of a previous 12 months’s tax provision on account of a change within the technique of calculating a tax deduction, foundation analysis of judicial rulings.

HCL Technologies Chief Financial Officer Prateek Aggarwal stated that excluding this, PAT was decrease by 2.9 per cent in December 2021 quarter year-on-year in rupee phrases.
“It’s basically three things – one is the seasonality, the leaves taken by people during this quarter because of the festive season. Second is the increments we gave out this quarter…third is the cost of attrition and backfilling people at a higher cost, targeted retention costs, higher recruitment costs and others,” he instructed reporters.