HCL Technologies Ltd on Monday reported its fiscal second quarter earnings with profit at Rs 4,237 crore. The company posted a growth of 10.5 per cent YoY in comparison to Rs 3,833 crore during the corresponding quarter of previous year, surpassing estimates. It posted revenue from operations at Rs 28,862 crore, up 8.2 per cent as against Rs 26,672 crore during the same period of previous financial year. The company EBITDA stood at Rs 5,362 crore.
According to a CNBC TV18 poll, HCL Tech was expected to report Q2 profit at Rs 4142 crore and revenue was estimated at Rs 28,530 crore.
The IT services major recorded revenue growth in Constant Currency (CC) terms by 1.6 per cent sequentially and 6.2 per cent YoY. The USD revenue was reported at $3,445 million, up 6.8 per cent YoY.
Shiv Walia, Chief Financial Officer, HCL Tech, said, “HCLTech has delivered robust financial results with constant currency (CC) revenue growth at an industry leading 6.2 per cent YoY. INR revenue reached Rs 28,862 crore, marking a sequential growth of 2.9 per cent and a YoY growth of 8.2 per cent. This revenue growth has come with an improved profitability. Our EBIT margins in Q2 rose to 18.6 per cent, up 149 bps sequentially. LTM Return on Invested Capital (ROIC) stands at solid 35.7 per cent at company level and 43.5 per cent at Services, an expansion of 353 bps YoY and 403 bps YoY respectively. Our dedicated efforts to improve our cash conversion continue to yield best in class results, with LTM FCF/NI coming in at 119 per cent.”
C Vijayakumar, CEO & Managing Director, HCL Tech, said, “We delivered a strong quarter with revenue growing 1.6 per cent QoQ in constant currency and EBIT coming in at 18.6 per cent. This growth was well distributed across verticals, geographies, and offerings. HCL Software has delivered a stellar performance of 9.4 per cent YoY this quarter and 6.4 per cent growth in H1 FY25 in constant currency, demonstrating the increasing relevance of our products for the digital economy.”
HCL Tech board also announced an interim dividend of Rs 12 per equity share of Rs 2 each of the company for the Financial Year 2024-25. “The record date of October 22, 2024 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 October 30, 2024,” it said in a regulatory filing.
HCL Tech’s deal wins
HCL Tech’s net new deal wins for the quarter in review stood at $2,218 million, up from $1.96 billion in Q1FY25. In terms of deals, C Vijayakumar said, “Our pipeline is very strong, including Data & AI, Digital Engineering, SAP migration and efficiency led programs. Our GenAI offerings like AI Force and AI Foundry are resonating very well with our clients and should be drivers of efficiency, growth, and innovation over the medium term.”
HCL Tech’s attrition rate
HCL Tech said that the total people count at the end of Q2 stood at 218,621, reporting net additions dropping by 780 people. The company added 2,932 freshers. The last twelve month (LTM) attrition stood at 12.9 per cent, down from 14.2 per cent in Q2 of last year.
HCL Tech’s FY25 guidance
The IT services giant has given its revenue growth guidance between 3.5- 5.0 per cent YoY in constant currency terms. For the full year FY25, HCLTech announced its revenue growth guidance in constant currency (CC) terms in the lower end by 50 basis points. Further, it retained its EBIT margin guidance at 18-19 per cent for the full year.
From: financialexpress
Financial News
