BENGALURU (Reuters) -India’s No.3 IT firm HCLTech reported weaker-than-expected quarterly results on Wednesday after its technology and telecom clients cut discretionary spending amid global macroeconomic uncertainties.
Net profit at HCLTech rose 7.7% to 35.34 billion rupees ($430.2 million) in the first quarter ended June 30, but missed analysts’ average estimate of 38.17 billion rupees, according to Refinitiv IBES data.
Revenue from operations rose 12.1% to 262.96 billion rupees. Analysts, on average, had expected revenue of 268.62 billion rupees, according to Refinitiv data.
The results come as larger rival Tata Consultancy Services topped quarterly profit estimates on the back of large order wins.
Unlike TCS that took a margin hit to reward employees, HCLTech deferred annual pay reviews of its staff by a quarter.
HCLTech however maintained its full-year revenue growth view of 6%-8% on a constant currency basis.
The company, which had new deal wins worth a total contract value of $1.57 bln in the quarter, said it was optimistic about deal pipeline conversion for the year.
The Indian IT industry has seen deal momentum slowing in recent months due to higher inflation and recessionary worries in its key markets such as the U.S. and Europe.
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Nivedita Bhattacharjee)