- HCL Tech’s revenue grew 5.2% sequentially to 24,686 crore, while net profit grew 6.2% to 3,489 crore.
- The company raised its FY23 revenue forecast from 12-14% to 16-17%, but tempered its margin guidance.
- Employee turnover remained stable at 23.8% in July-September, while the net number of employees exceeded 8,000.
Noida-based IT company HCL Technologies today reported a 6.2% increase in net profit in the second quarter to ₹3,489 crore, sequentially. Revenues also grew 3.8% sequentially to 24,686 crore.
Net margins improved marginally to 14.1%, from 14% in the last quarter, but are still down 170 basis points year-over-year.
Buoyed by good deal gains in the first half of the fiscal year, the IT company raised its revenue expectations – it now expects revenue growth of between 16-17% in constant currency for FY23, as opposed to its previous forecast of 12-14%.
However, it lowered the EBIT margin to 18-19%, as opposed to the previous forecast of 18-20%.
The turnover remained the same in the September quarter at 23.8%, as in the last quarter. Net employee additions for the quarter were 8,359.
Management indicated that demand for IT services remained strong with a push for digital transformation.
HCL Tech said it won 11 major deals during the quarter with a total contract value (new deal profits) of $2.38 billion and sequential growth of 16%, while revealing it has a “mega” deal in the quarter. brought in. However, it added that the impact of this deal will only be visible in FY24.
“Our services business grew 5.3% quarter on quarter and 18.9% year on year in constant currency, driven by strong demand for cloud, engineering and digital services. This is a validation of the strategic choices we have made and the effectiveness of our operational framework. Our bookings and pipeline remain very strong which bodes well for our future growth,” said C Vijayakumar CEO & MD at HCL Technologies.
|Particularities||Q2 FY23||Q1 FY23||Q2 FY22|
|Revenue||₹24,686 crore||₹23,464 crore||₹20,655 crore|
|Net profit||₹3,489 crore||₹3,283 crore||₹3,259 crore|
Source: Company Reports
Roshni Nadar Malhotra, chairman of the company, said: “With our differentiated portfolio, we are well positioned to capitalize on the opportunities ahead in the digital-first world.”
Manufacturing was the only segment to grow double-digit in the second quarter of the fiscal year.
|Technology and services||2.4%|
|Retail & CPG||3.0%|
|Telecommunications, Media, Publishing & Entertainment||4.1%|
|Life Sciences & Healthcare||5.1%|
HCL Tech’s board of directors also recommended an interim dividend of ₹10 per share, with October 20 as the record date.
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