IT company HCL Technologies on Friday reported that its net profit in the first quarter of FY 2020-21 increased by 31.7 per cent to Rs 2,925 crore. The company said that Shiv Nadar has also announced to step down as chairman. His daughter Roshni Nadar Malhotra will now be the chairman of the company with immediate effect. The company made a net profit of Rs 2220 crore in the April-June 2019 quarter.
The company’s revenue grew 8.6 percent to Rs 17,841 crore in the quarter under review, from Rs 16,425 crore in the year-ago quarter. At the same time, revenue of the company was Rs 18,590 crore in the March 2020 quarter. Chairman and CEO of HCL Technologies C Vijayakumar said that adverse conditions in the quarter under review have adversely affected our revenue, although the operational model’s flexibility helped maintain margins and cash flows.
He said that the company had enough deals and it got 11 very important deals in this period. The company said that the board of directors has decided to replace Shiv Nadar with his daughter and the company’s non-executive director Roshni Nadar Malhotra as the chairman of the board and the company. Her appointment is effective from Friday. The company stated that Shiv Nadar had expressed his desire to step down and he would remain the company’s MD with the designation of Chief Strategy Officer.
HCL Technologies termed the suspension of H1-B visas by the US as unfortunate and said the move would have minimal impact on Information Technology (IT) services in the short term, as it had been hiring people locally for the last 10 years Is coming C Vijay Kumar, President and CEO of the company said that we started investing in centers in the US 10 years ago, we have 15 scaled distribution centers in the US. We were one of the first people to increase localization, close to 67 percent of our employees in the US are locals.
He said that this is the trend, which we have really taken forward in the industry and now many other companies are following us. He said that the company has enough people in the US to meet the demand. He said that although I would say about the rule is unfortunate, but given that we have been ready to increase our local presence not only in the US, but in all geographies, we are very much due to the current change in policy See less impact. At least in the near term.
He said that if this is continued for a longer period of time, the company “has to focus on how we meet the demand”. HCL Tech has over 1.5 lakh employees worldwide by the end of the June 2020 quarter. The company derives 63.7 percent of its revenue from the US market. Europe accounted for 28.3 percent of the company’s total revenue in the June quarter and eight percent of all other markets.
