HCL Technologies: HCL says Covid impact not ‘significant’; bookings on track

New Delhi: Country’s third largest software services firm HCL Technologies has said that it does not expect the impact of the CoronaVirus pandemic to be “significant” even as the impact on this quarter’s numbers is yet to be quantified, the Noida-headquartered firm said in a statement on Monday.

“Our exposure to the more impacted verticals are not significant. Booking during this quarter has largely been on track as significant part of closures happened in January,” it said.

From a vertical perspective, HCL’s exposure to verticals which have seen a major disruption due to the CorovaVirus like Oil & Gas, Travel & Hospitality, High-End Retail is in single digits. HCL said that its business model is a healthy mix of recurring product revenues, managed services and discretionary spend led professional services.

“Around 76% of our India-based employees and 92% of our employees in other geographies are enabled to work from home. In certain geographies, a limited set of its employees are working from offices, wherever it is permissible by the government and local authorities. The company said that it has not witnessed any outages or major disruption in operations with this newer format of work from home delivery.”

“We recognize our investments in risk management systems and processes over the last several years are helping us to minimize the short-term impact and to be adequately prepared for the medium term, if it gets worse. We are also confident our business model will help us to emerge stronger in the longer term as it has been built for resilience during tough times,” said HCL.

Earlier this month, HCL had confirmed that one of its employee in its Noida campus had tested positive for the virus and the company had immediately put in place measures to contain the situation.