Press "Enter" to skip to content

HCL Tech Q3 profit jumps nearly 27% to Rs 3,982 crore; firm raises CC growth guidance – Moneycontrol.com

HCL Technologies Ltd.

India’s third-largest software services provider, HCL Technologies, on January 15 reported a 26.7 percent jump in consolidated profit for the quarter ended December 2020 at Rs 3,982 crore, versus Rs 3,142 crore in the previous quarter.

Consolidated revenue for the quarter increased by 3.8 percent to Rs 19,302 crore, driven by broad-based growth in segments and geographies. Revenue stood at Rs 18,594 crore in the September quarter.

Dollar revenue during December quarter stood at $2,617 million, up from $2,507 million in the second quarter of FY21.

Following the ease of COVID-19 concerns, the company in October last year had guided 1.5-2.5 percent revenue growth in constant currency for Q3 FY21 & Q4 FY21, while the FY21 EBIT margin guidance was also revised upwards to 20-21 percent from 19.5-20.5 percent.

Find All Earnings Related News Here

HCL Technologies shares surged 16.6 percent during December quarter and 66.5 percent in 2020 compared to Nifty IT index’s 21.55 percent and 55 percent gain.

The company’s revenue crosses USD 10 billion milestone in CY20, delivering 3.6% YoY growth in constant currency.

It has won 13 transformational deals across industry verticals, including Life Sciences and Healthcare, Technology and Financial Services.

The board of directors has declared an interim dividend of Rs 4 per equity share of Rs 2 each of the company for the Financial Year 2020-21.

The record date of January 23, 2021 fixed for the payment of the aforesaid interim dividend has been confirmed by the board of directors. The payment date of the said interim dividend shall be February 8, 2021.

IT Services Attrition (LTM) was at 10.2%, down 667 bps on YoY basis. Net additions at 6,597 during the quarter.

Earnings before interest, tax (EBIT) margin stood at 22.9% versus 21.6% (QoQ).

Guidance

Company’s revenue seen growing at 2-3% in CC terms for Q4 FY21 and EBIT margin in FY21 seen in the range of 21-21.5%.

Its constant currency growth guidance raised to 2-3% from 1.5-2.5% and EBIT margin guidance raised to 21-21.5% vs 20-21% earlier.