IT services provider HCL Technologies' first quarter (April-June) profit is likely to fall 1.8 percent sequentially to Rs 1,890 crore but revenue may increase 5.2 percent to Rs 11,255 crore, according to average of estimates of analysts polled by CNBC-TV18.
Dollar revenue may jump 5.75 percent to USD 1,678.5 million during the quarter compared with USD 1,587.2 million in preceding period, supported by external business of Volvo that acquired in February.
After exclusion of Volvo, the revenue growth may be around 3 percent.
Earnings before interest and tax (EBIT) may decline 1.2 percent quarter-on-quarter to Rs 2,195 crore and margin may contract by 127 basis points to 19.5 percent in the quarter ended June 2016.
Weak margin may be due to lower margin profile of Volvo and transition costs. March quarter included provision reversal in BPO business aiding consolidated EBIT margin by 60 bps.
Management has been guided towards flat margin in the remainder of the business.
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