IT major HCL Technologies, now rebranded as HCLTech, on October 12 said its consolidated net profit for the quarter ended September 2022 increased 7.05 percent to Rs 3,489 crore from Rs 3,259 core reported a year ago.
Revenue from operations stood at Rs 24,686 crore, clocking a 19.5 percent growth over Rs 20,655 crore last year, according to a stock exchange filing.
Sequentially, revenue rose 5.2 percent quarter on quarter (QoQ) from Rs 23,464 crore. Profit climbed 6.27 percent compared to Rs 3,283 crore in the previous quarter.
The numbers were better than expectations. Brokerages polled by Moneycontrol had expected net profit to jump 2.7 percent on a sequential basis while revenue was expected to increase 3.4 percent, aided by rupee depreciation.
The company said its constant currency revenue was up 3.8 percent QoQ and 15.8 percent year on year (YoY). IT services revenue rose 5.3 percent QoQ and up 18.9 percent YoY in constant currency.
The company’s EBIT margin for the quarter was at 18 percent, up 93 basis points QoQ. Net profit margin also appreciated 12 basis points QoQ to 14.1 percent.
HCLTech said it won 11 large deals – 8 in services and 3 in products. Total contract value of new deal wins was at $ 2,384 million, up 16 percent QoQ, up 6 percent YoY.
“Our bookings and pipeline continue to be very strong that augurs well for our future growth,” said C Vijayakumar, CEO & Managing Director, HCLTech. “These reflect our constant and continuing efforts to supercharge outcomes for all our stakeholders.”
In its guidance, the company management said services revenue is expected to grow 16-17 percent YoY in constant currency while it increased revenue guidance to 13.5-14.5 percent YoY in constant currency thanks to higher deal wins in the first half of the fiscal. EBIT margin guidance was revised to 18-19 percent.
The Board of Directors of HCLTech also declared an interim dividend of Rs 10 per equity share. The record date for the payment of dividend is October 20, 2022. The payment date of the interim dividend shall be November 2, 2022.
The company said overall, it added 8,359 employees during the quarter, taking the headcount to 2,19,325. This includes 10,339 freshers. Last twelve month attrition was at 23.8 percent in IT Services.
