HCLTech (HCLT.NS), an Indian company, cut its full-year revenue growth forecast on Thursday, indicating near-term weakness in expenditure as its customers continued to exercise caution owing to shaky demand and a difficult macroeconomic climate.
Unlike the former expectation of 6-8%, the business anticipates organic growth in fiscal 2024 to be between 4-5% year-over-year in constant currency terms. Along with the German purchase ASAP, it anticipates growth of between 5 and 6%.
By market value, HCLTech, India’s third-largest IT company, said in July that it would acquire ASAP Group, a provider of automotive engineering services, for $280 million. The company’s consolidated net profit increased 9.8% to 38.32 billion rupees ($460.35 million) in the second quarter that ended on September 30, narrowly above the average estimate of 37.12 billion rupees set by LSEG analysts.
Although it increased by almost 8%, the total revenue from operations, expected to be 268.14 billion rupees, fell short.
The results follow cuts to revenue forecasts for the year by larger competitors Infosys (INFY.NS) and TCS (TCS.NS) and a shortfall in Q2 revenue projections due to sluggish client expenditure.
Both businesses had warned of an uncertain demand forecast shortly. TCS stated that it was unclear when discretionary spending would return due to client expenditure reductions in important U.S. and European markets due to concerns about an economic downturn and higher-than-expected interest rates.
Accenture, a major provider of IT services, predicted full-year earnings below Wall Street projections last month and hinted that the year would be dull. Ahead of results on Thursday, HCLTech shares ended the day down 1.75 percent.
