HCL Technologies Limited shares surged 3.79% to Rs 987.75 per share on
the BSE after the company reported a consolidated net profit of Rs 3,489 crore, up
7.05% to Rs 3,259 crore in the year-ago period. Profit surged 6.27% compared to
Rs 3,283 crore in the previous quarter.

At 03.06 pm, the IT stock was trading 3.03% higher at Rs
980.50. The stock touched an intraday high of Rs 987.75 on the BSE. It has a
total market cap of Rs 2,66,916 crore as of October 13.

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Shares of HCL have plunged over 12% in the last six months
and more than 22% in the last year.

Revenue from operations stood at Rs 24,686 crore, posting a
19.5% growth over Rs 20,655 crore last year. Sequentially, revenue grew 5.2%
quarter on quarter from Rs 23,464 crore.

The company said its constant currency revenue rose 3.8% quarter
on quarter and 15.8% year on year. IT services revenue grew 5.3% QoQ and 18.9%
YoY in constant currency terms.

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HCL Tech’s EBIT margin for the quarter was at 18%, up 93
basis points (bps) quarter on quarter. The net profit margin was at 14.1%, up
12 bps quarter on quarter.

The company said it won 11 large deals including 8 in
services and 3 in products. The total contract value of new deal winds was at
$2,384 million, up 16% QoQ, up 6% YoY.

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“Our bookings and pipeline continue to be very strong that
augurs well for our future growth,” said C Vijayakumar, CEO & Managing
Director, HCL Tech. “These reflect our constant and continuing efforts to
supercharge outcomes for all our stakeholders,” he added.

In its guidance, the company management said services revenue
is expected to grow 16-17% year on year in constant currency whole it increased
revenue guidance to 13.5-14.5% year on year in constant currency thanks to
higher deal wins in the first half of the financial year. EBIT margin guidance
was revised to 18-19%.

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The Board of Directors of HCL Tech also declared an interim
dividend of Rs 10 per equity share. The record date for the payment of the
dividend is October 20, 2022. The payment of the interim dividend shall be on
November 2, 2022.

The company said it hired 8,359 employees during the
quarter, taking the headcount to 2,19,325. This includes 10,339 freshers. Last
twelve months attrition was at 23.8% in IT Services.

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“We continue to see HCL Tech’s defensive business as a
positive in a demand-constrained environment,” said domestic brokerage
Motilal Oswal. The brokerage firm has increased its estimates for fiscal 2023
and fiscal 2024 by 4%-6% and has reiterated its Buy rating with a target price
of Rs 1,240 per share.