HCL Technologies shares slid 2.46% to Rs 905.2 after reporting an 8.6% drop in consolidated net profit to Rs 3,283 crore in Q1 FY23 despite a 3.8% increase in revenue to Rs 23,464 crore in Q4 FY22.
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In the first quarter, net income increased by 2.4% compared to the same period last year, while revenue increased by 16.9%. In FY2023, HCL anticipates revenue growth of 12% to 14% in constant currency terms, with an EBIT margin of 18% to 20%.
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EBITDA dropped by 1.5% in Q1 FY23 to Rs 4,975 crore from Rs 5,053 crore in Q4 FY22. EBITDA margin was 21.2% in Q1 FY23, compared to 22.4% in Q4 FY22.
The company’s revenue was $3,025 million, up 1.1% QoQ and 11.2% year on year in dollar terms. In constant currency terms, revenue increased by 2.7% QoQ and 15.6% year on year in Q1 FY23.
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Total contract value (TCV) of new deal wins was $2,054 million in Q1 FY23, up 23.4% year on year. During the first quarter, the Services business grew by 2.3% QoQ and 19.0% year on year.
Engineering and R&D Services increased at a strong 3.7% QoQ cc (23.0% YoY cc), fueled by growth in digital engineering and IoT Works.
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IT and Business Services expanded at a strong 2.0% QoQ cc (18.1% YoY cc), owing to increased cloud transformation and application and data modernisation. Manufacturing (19.1%), Financial Services (16.4%), Lifesciences & Healthcare (15.7%), Telecom, Media, Publishing & Entertainment (29.2%), Technology & Services (34.2%), and Public Services (15.2%) are the sectors with the most growth momentum.
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Europe (22.5%), the Americas (17.5%), and the ROW are driving geographic growth. Employee benefits expenditure was Rs 12,978 crore in Q1 FY23, up 3% QoQ and 21.2% year on year.
The total headcount was 210,966, up 1% quarter on quarter and 19.5% year on year. Attrition (during the previous 12-month period) was 23.8% in Q1 FY23, compared to 21.9% in Q4 FY22 and 11.8% in Q1 FY22.
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The board has declared a dividend of Rs 10 per share, with the payment date set for August 2, 2022.