HCL Technologies revenue to be impacted by volatile currency

Revenue of software major HCL Technologies for its first quarter (July-September) would be impacted by a volatile currency movement in the forex market, the company has said.

“Our 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 in timelines for complex engagements in infrastructure services,” said HCL Technologies in a regulatory filing to the Bombay Stock Exchange (BSE) late Wednesday.

The Noida-based fourth largest outsourcing firm’s financial year is from July to June every year.

“Revenues to be reported in dollar terms for this quarter (Q1) would have an adverse impact of 80 basis points on account of sharp depreciation of multiple currencies against the US dollar,” HCL Technologies forewarned.

Admitting to differences cropping up in one of the multi-million, multi-year custom application development projects being done for a customer in the public services vertical, HCL Technologies said while discussions were underway for disengagement, it was considering reserving $20 million for the fallout.

For the last quarter (April-June), HCL Technologies reported Rs.4,466 crore revenue and Rs.17,153 crore for its previous financial year (2014-15).