HCL Technologies: Slow product sales may be near-term overhang

Overall growth is likely to remain strong

An 8 per cent decline in sales of the products and platforms segment played spoilsport in an otherwise strong September quarter (Q2FY22) for HCL Technologies. The sales decline was on account of a delay in deal closures, according to the management of India’s fourth-largest software services firm by market capitalisation.
 
The company reduced the FY22 growth guidance for the segment, which contributed 12 per cent to Q2 revenues from low single digits to a relatively flattish 0-1 per cent. While analysts expect the business to bounce back next year and register better numbers, there may be a near-term impact.