HCL Technologies is all set to report its financial results for the April-June period on Tuesday, after Tata Consultancy Services (TCS) kicked off the corporate earnings season last week. Analysts in a CNBC-TV18 poll expect HCL Tech to report a net profit of Rs 3,297 crore for the three-month period, a decline of 8.2 percent compared with the previous quarter.

Noida-based HCL Technologies' quarterly earnings come at a time when IT companies are scrambling to protect margins due to elevated employee costs amid high levels of attrition despite revenue growth and increased spending on technology across sectors.

HCL Tech's revenue in dollar terms is expected to rise 1.3 percent sequentially in the quarter ended June, and at 2.5-3 percent in constant currency terms.

The IT company's earnings before interest and tax (EBIT) — a key metric of profitability — is estimated to increase 1.3 percent on quarter.

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The margin is estimated at 17.6 percent for the April-June period, lower by 40 bps compared with the previous quarter, and much lower than HCL Tech's guidance of 18-20 percent for the year ending March 2023.

Analysts expect HCL Tech to maintain its revenue growth guidance for the year ending March 2023 at 12-14 percent.

HCL Tech shares have fallen 26 percent so far in 2022 amid a broader correction on Dalal Street thanks to sustained foreign institutional outflows.

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