HCL Technologies on July 12 reported a 2.11 percent growth in its consolidated profit after tax (PAT) at Rs 3,281 crore, compared to Rs 3,213 crore reported in the corresponding quarter a year ago. Sequentially, the profit declined by 8.83 percent from Rs 3,599 crore reported in the quarter ended March 2022.
The consolidated revenue of the Noida-based IT company witnessed a growth of 16.92 percent at Rs 23,464 crore as against Rs 20,068 crore reported in the year-ago period. On a sequential basis, the revenue increased 3.83 percent in comparison with Rs 22,597 crore reported during the previous quarter.
The reported constant currency revenue of the company came in at $3,024.9 million, up 1.1 percent sequentially and 11.2 percent YoY.
The company also declared a dividend of Rs 10 per share.
In its guidance for FY23, The company said revenue is expected to grow between 12-14 percent in constant currency. EBIT margin is expected to be between 18-20 percent.
For the quarter, the total contract value (TCV) of new deal wins stood at $2.05 billion, registering a 23.4 percent YoY growth. Of this, Services TCV was at $1.95 billion enabled by seven net new large deal wins while products TCV was at $104 million enabled by nine net new large product deal wins.
“We have started FY’23 on a strong note,” said C Vijayakumar, CEO & Managing Director, HCL Technologies.
“Our services business continues to have robust growth momentum, growing at 2.3 percent QoQ and 19 percent YoY in constant currency, driven by our digital engineering and digital application services with cloud adoption being a horizontal theme across all services and verticals,” the CEO added.
“Our operating margin came in at 17 percent. We have put in place the right measures that will improve our profitability going forward.”, Vijayakumar said further.
The late twelve-month attrition rate – the rate at which employees are leaving the company– rose to 23.8 percent from 21.9 percent in the previous quarter and 11.8 percent in the same quarter last year. The company said it added 6,023 freshers during the quarter.
The company said growth momentum was led by Technology & Services (34.2 percent), Telecom, Media, Publishing & Entertainment (29.2 percent), Manufacturing (19.1 percent), Financial Services (16.4 percent), Lifesciences & Healthcare (15.7 percent), and Public Services (15.2 percent). Geography growth was powered by Europe (22.5 percent), the Americas (17.5 percent), and the Rest of the World (18.2 percent).