HCL Technologies, India's fourth largest IT service provider, has broken the recent run of positive results from India and announced a drop in profit.
Indian suppliers used to double-digit growth over the last decade have been braced for this to change.
HCL announced a 16.7% drop in profits for its second financial quarter compared to the previous year and a 4.1% decline compared to the previous quarter.
It made $63.8m profit for the quarter on revenues of $651.7m. Revenues increased 3.4% compared to the previous quarter and 28.5% compared to the same period last year.
Vineet Nayar, CEO at HCL, said there were signs of recovery. "We see early signs of economic recovery, which we anticipate would gain momentum by the middle of 2010. HCL is well positioned to leverage the structural shifts developing in the marketplace. "
HCL said its European business performed well.
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