HCL Tech Q4 Results: Profit jumps 11% YoY to Rs 3,983 crore; revenue rises 18%

HCL Technologies has reported a consolidated net profit of Rs 3,983 crore for the quarter ended March. This is an increase of 11% from Rs 3,593 crore clocked in the corresponding period of last year.

Revenue from operations rose 18% to Rs 26,606 crore for the fourth quarter under review, compared with Rs 22,597 crore in the same period last year.

On Wednesday, ahead of the results, HCL Tech shares closed 0.16% lower at Rs 1,037 apiece on NSE.

The Board of Directors declared an interim dividend of Rs 18 per equity share of the company for the financial year 2023-24.

On a sequential basis, net profit fell 3% from Rs 4,096 crore reported in the preceding December quarter.

The net profit beat the ET Now poll estimate, which pegged the figure at Rs 3,860 crore. The company expects its revenue to grow anywhere between 6-8% in constant currency (CC) terms for FY24, while EBIT margin guidance is given at 18-19%.

For the fourth quarter, the constant currency revenue growth declined 1.2% sequentially but was up 10% YoY. In USD terms, the revenue grew 8% year-on-year to $3,235 million.

Segment-wise, revenue from services revenue is up 11% YoY in CC terms. Meanwhile, revenue from the software business saw a growth of 8.2%, and digital revenue has risen by 17%.

The Noida-based IT company has reported an EBIT (earnings before interest, tax, depreciation and amortisation) at Rs 4,836 crore, which is up 19% YoY.

During the quarter, the company has won 13 large deals -- 10 in services and 3 in software. The total contract value (TCS) stood at $2.07 billion, down 8% YoY.

For the full year ending March 2023, the company's revenue has crossed the Rs 1 lakh crore mark, up 18%.

"We have delivered a stellar performance in FY23, crossing Rs 1 lakh crore of revenue powered by industry-leading services growth of 16%. Our pipeline is near an all-time high, which reflects our differentiated business mix and strong client demand for our offerings," said C Vijaykumar CEO and MD, HCL Tech.

Both Europe and the Rest of the World (RoW) have been a letdown during the fourth quarter as CC growth contracted 1.4% and 1.9%, respectively. The constant currency growth for the American division stood at 1.8%.

During the January-March period, HCL Tech has added 3,674 employees, taking the total headcount to 2,25,944 at the end of the March quarter.

The attrition rate on a trailing 12-month basis further dropped to 19.5% compared to 21.7% in the December quarter.


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