HCLTech’s first quarter net drops 10% YoY to Rs 3,843 crore, revenue up 8%

HCLTech trailed market estimates with a 9.7% year-on-year decline in quarterly net profit due to higher costs and the one-time impact of a client’s bankruptcy. Profit fell 10.8% sequentially.

India’s third-largest software services company reported a net profit of Rs 3,843 crore in the three months ended June, historically a soft quarter for the software business. Margins fell 16.3% during the quarter amid lower employee utilisation “due to delay in implementation and ramp-down of a specific program, which resulted in a larger bench.”