A detailed investigation is underway in consultation with relevant stakeholders to assess the root cause and take remedial action as necessary, says HCLTech
HCL Technologies (HCLTech) reported a ransomware incident in a specific cloud environment for one of its projects. The company is conducting a thorough investigation in collaboration with relevant stakeholders to determine the root cause and implement necessary remedies, as disclosed in a stock exchange filing. HCLTech reassured that there is no observed impact on its overall network, emphasising that cybersecurity and data protection remain top priorities.
“A detailed investigation is underway in consultation with relevant stakeholders to assess the root cause and take remedial action as necessary,” the software services major says in a stock exchange filing.There has been no impact observed due to this incident on the overall HCLTech network, the company says, adding that “cybersecurity and data protection is a top priority for HCLTech.”
Following this revelation, HCLTech’s shares experienced a 3.38% decline to ₹1,437 each on the National Stock Exchange (NSE), while the broader NSE Nifty 50 saw a 1.4% drop. Despite this incident, HCLTech maintains its focus on executing plans for the current fiscal year, amid a volatile environment. The company had recently revised its revenue growth guidance for the fiscal year, projecting between 5% and 6% growth on a constant currency basis, including revenue from the acquisition of German automotive engineering services provider ASAP.
HCLTech’s net profit for the quarter ending September increased by 9.8% year-on-year to ₹3,832 crore, with consolidated revenue growing by 8% to ₹26,672 crore. The EBIT margins rose to 18.5%, meeting the company’s guidance of 18-19% for the ongoing fiscal year. Notably, the total contract value of new deals reached $4 billion, marking a significant growth on both quarterly and yearly bases.
While HCLTech’s CEO, C Vijayakumar, acknowledged a soft first half of the fiscal year, he expressed expectations for a robust second half. Discretionary spending remained subdued, but Vijayakumar anticipates strong growth in the coming quarters, driven by new bookings and significant deal acquisitions. The company’s proactive measures, including reduced dependence on subcontractors and controlled discretionary spending, contributed to an exceptional margin performance. Attrition continued to decline, reaching 14.2% in Q2 FY24 from 23.8% in the same quarter last year, with the workforce standing at 2,21,139 employees.
“The environment is quite volatile. So it’s quite difficult to take a call from a long term perspective. We are focused on executing this financial year,” HCL Tech managing director and CEO C Vijayakumar said in the company’s post-earnings press conference in October.
