HCLTech's Q3 revenue up 2.6%, beating estimates, Americas lead

CL Technologies Ltd beat analyst estimates with a higher-than-expected revenue of $3.53 billion for the third quarter, up 2.6% sequentially, driven by strong sales from clients in the Americas, which account for about two-thirds of its revenue.

- Jas Bardia

Businesses in the Americas contributed about 81% to Noida-based HCLTech's sequential incremental revenue of $88 million. Its net profit grew 7.5% sequentially to $544 million. It beat analyst estimates on both fronts. A Bloomberg survey of 24 analysts expected HCLTech to report $3.5 billion in revenue and a similar survey of 22 analysts said the firm will post $537 million in net profit.

By contrast, TCS, which is the country's largest software services company, reported a revenue decline of 1.7% in the December quarter to $7.54 billion. This was its worst third-quarter showing in nine years.

There was a stark difference between the two companies even in terms of headcount.