The Shares of India’s HCL Technologies Ltd (HCLT.NS) fell as much as 6.2 per cent on Monday.
The news: On Friday, the IT services firm reported a 13 per cent reduction in third-quarter net profit while forecasting double-digit sales growth in 2022.
- While HCL Tech’s total margin stayed steady, the IT services provider’s margin declined 190 basis points on a quarterly basis.
- Margins are likely to recover in the fiscal year 2022-23, according to the corporation.
- During the pandemic, India’s software services sector has garnered more business as organisations around the world seek to increase their digital footprint and demand for IT services ranging from cloud computing to digital payment infrastructure to cybersecurity grows.
- However, as demand expands, corporations face fierce rivalry to retain personnel, resulting in significant wage increases.
- Last week, Infosys (INFY.NS) raised its revenue forecast and Tata Consultancy Services (TCS.NS) predicted robust demand, saying they expected tech spending to continue.