HCL tells investors to brace for impact – positive impact of better-than-predicted performance

'Good booking momentum' across all sectors and geographies says outsourcer

If you're looking for a sign that the global economy may not be in dire post-pandemic peril, Indian services giant HCL may just have delivered.

The company yesterday issued a regulatory statement that updates its revenue guidance because it feels the result will be "meaningfully better than the top end of the guidance we had provided in July 2020".

That guidance, as we reported at the time, was for 1.5 per cent to 2.5 per cent revenue growth for the rest of calendar 2020.

Yesterday's filing advised: "The Revenue growth for the current quarter is expected to exceed 3.5 per cent quarter on quarter in constant currency, enabled by broad based momentum across all service lines, verticals and geographies."

The company also advised that previously predicted earnings margin of between 19.5 per cent and 20.5 per cent should fall within a range of 20.5 to 21 per cent.

And there's more good news to come. The company said: "Good Booking momentum continues this quarter, led by Life Sciences & Healthcare, Telecom & Media and Financial Services verticals."

Better yet: "The pipeline continues to look healthy across service lines, verticals and geographies."

HCL operates in 49 countries so that's a lot of places where there's healthy demand for IT services. Whether the company is representative of the economy beyond tech is another matter entirely. But for Reg readers, at least, it offers a sign that our little corner of the world economy could be in decent shape. ®

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