COVID-19’s impact on business not likely to be significant: HCL By Elets News Network - 30 March 2020

COVID-19's impact on business not likely to be significant HCL

In the wake of Novel Coronavirus pandemic striking IT companies hard across the world, Indian IT major HCL Technologies Ltd (HCL) has said that it has taken enough measures to absorb the impact on its business and that the company doesn’t “expect it to be significant.”

“While the impact on this quarter’s numbers is yet to be quantified, we don’t expect it to be significant. 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,” the company said in a regulatory filing.

“Our business model is a healthy mix of recurring product revenues, managed services and discretionary spend led professional services. From a vertical perspective, our exposure to verticals like Oil & Gas, Travel & Hospitality, High-End Retail is in single digits,” the company added.

Praying for the earliest end to the crisis, the Indian IT major said that 76% of its India-based employees and 92% of its employees in other geographies have been enabled to work from home.

“In certain geographies, a limited set of our employees are working from our offices, wherever it is permissible by the government and local authorities. It is noteworthy that we have not witnessed any outages or major disruption in operations with this newer format of work from home delivery,” it said.

HCL has been monitoring the Covid-19 outbreak since late January and had invoked its Business Continuity Plan and Risk Management Framework quite early to minimise the impact on its employees and clients.

“Given the extended nature of this situation, we have looked at ensuring that we put in medium-term sustainable measures in place to ensure continuity of all our operations and client deliverables,” the company said.

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