HCL Tech Q4 Results: Net profit rises 226% to Rs 3,593 crore, revenue up 15%

HCL Technologies on April 21 reported a consolidated
net profit of Rs 3,593 crore for the quarter ending March 2022, up 226% from Rs
1,102 crore in the corresponding quarter of the previous financial year. 

Sequentially, the company’s net
profit saw a growth of 4.3% in the reported quarter from Rs 3,442 crore in the
December quarter.

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The company’s revenue from
operations stood at Rs 22,597 crore, up 15.05% from Rs 19,641 crore in the
year-ago period. 

Under its FY23 guidance, the
company said that it expects revenue to grow between 12%-14% in constant
currency. EBIT margin is expected to be between 18%-20%.

The Board has also declared an
interim dividend of Rs 18 per equity share for the financial year
2022-23.

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“Our
core beliefs of innovation and collaboration, driven by a strong faith in
humanitarian values, have stood us well in these fast-changing times. Clients
worldwide see HCL Technologies as their partner of choice to drive business
outcomes with our leading-edge technology services, solutions and
products,” said Roshni Nadar Malhotra, Chairperson, HCL Tech.

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“We have
delivered yet another stellar quarter in our Services business, where the
revenue is up 5% QoQ & up 17.5% YoY in constant currency. Over the last
three quarters, our Services business has been consistently growing organically
at 5% and higher, delivering one of the highest CQGR in the industry. Our
overall growth on a YoY basis stands at 12.7% which is better than the guidance
led by strong momentum in Digital, Cloud and Engineering services. We continue
to invest proactively to create a larger talent pool to address the
demand”, said HCL Tech CEO & MD C Vijayakumar.

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The
company has recorded strong booking performance with a total contract value of
new deal wins at $8,308 million, registering 14% YoY growth. TCV of new deal
wins stood at $2,260 million for the March quarter, registering 6% sequential growth.

During
the March quarter, revenue in constant currency surged by 13% over last year’s
period. Segment-wise, the services business has grown 17% year-on-year, while
engineering and R&D services grew at a robust 24% YoY in constant currency,
driven by traction in digital engineering and IoT Works.

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IT and
Business Services registered a strong growth of 16% YoY, driven by an
acceleration in cloud transformation and application and data modernization.

On a
trailing 12 months basis, the attrition rate increased to 21.9% during the
March quarter.

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The
company has added nearly 40,000 freshers during the fiscal 2022 year, taking
the total headcount to 208,877. Net employee additions during the quarter were
also brisk at 11,100, up 5.6% sequentially.

On
Thursday, HCL Tech shares closed 1.18% higher at Rs 1,102.30 apiece on NSE.