HCL Technologies Ltd shares tanked nearly 6% to Rs 1260.20 on BSE at 9:16 am after reporting Q3 results.

In its financial report for the quarter ending December 31, 2021, the company posted a net profit of Rs 3,442 crore, up 5.4% quarter on quarter, and revenue of Rs 22,331 crore, up 8.1% QoQ, comfortably above Street estimates.

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In the corresponding quarter last year, the company reported a consolidated profit after tax (PAT) of Rs 3,969 crore. PAT was Rs 3,259 crore in the previous quarter.

It should be noted that PAT for the corresponding quarter last year increased by Rs 438 crore (USD 59.4 million) due to the reversal of a prior year’s tax provision. The reversal was caused by a change in the technique of computing tax deductions, which was based on a review of legal judgements.

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PAT for the current quarter, excluding this, is down 2.9% year on year in Rupee terms (down 4.7% YoY in dollar terms).

The IT services company’s revenue in dollar terms increased ($2,977 million) 6.7% YoY and QoQ, while constant currency (CC) revenue increased 7.6% QoQ and 15% YoY.

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According to the company’s earnings release, the 7.6% quarterly rise in CC revenue was the biggest in 12 years. Its earnings before interest, taxes, depreciation and amortization (EBITDA) increased 8.3% QoQ to Rs 5,242 crore.

According to the report, HCL Tech has an operating cash flow of $584 million and a free cash flow of $521 million as of December 31, 2021. The company reported $2,666 million in gross cash and $2,140 million in net cash.

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The company stated that it anticipates sales to climb in the double digits in constant currency in the fourth quarter of the current fiscal, FY22 and that its EBIT margin would be between 19% and 21% for the rest of the fiscal year.

The company stated in the report that it was recognized by Forbes as one of the world’s best employers for the second year in a row.

According to the company, it has 1,97,777 full-time employees, with a net addition of 10,143. The women make up 27.7% of the staff, and 163 different nationalities are represented. There are 1,84,430 technical personnel and 13.347 sales and support staffers among its overall workforce.

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The company stated that it planned to hire 20,000-22,000 people this fiscal year and that it had already hired 16,000 new employees by the third quarter. HCL Tech reported a 19.8% attrition rate in the previous 12 months, a 3.1% rise QoQ. This excludes involuntary attrition and digital process operations, according to the company.