IT firm HCL Technologies (HCLTech) on January 13 reported 5.5 percent on-year rise in net profit at Rs 4,591 crore for the quarter ended December 31, 2024, in line with the Street expectations. The IT firm declared interim dividend of Rs 18 per equity share of Rs 2 face value, which includes special dividend of Rs 6 per share to celebrate 25 years of HCLTech’s public listing.
HCL Tech's revenue from operations rose 5 percent to Rs 29,890 crore in Q3 FY25 as against Rs 28,446 crore in Q3FY24. According to a Moneycontrol poll of nine brokerages, HCL Tech was pegged to deliver a revenue of Rs 30,135 crore and consolidated net profit of Rs 4,596 crore in the fiscal third quarter; missing on both the estimates.
HCLTech has updated its full year revenue guidance.
For the full year FY25, HCLTech had increased its revenue growth guidance in constant currency (CC) terms in the lower end by 100 basis points. Revenue growth guidance is now 4.5-5 percent. The company has retained EBIT margin guidance at 18-19 percent for the full year.
In Q3, the firm crossed its margin guidance band, increasing 93 basis points sequentially to 19.5 percent.
Ahead of the results today, HCL Tech share price fell more than 1 percent to end at Rs 1,975 on NSE, after holding flat for most of the trading session.
C Vijayakumar, CEO & Managing Director, HCLTech said,“HCLTech delivers another quarter of solid growth at 3.8% QoQ in constant currency and EBIT at 19.5%. I am pleased that this growth is powered by broad based performance across business lines as our clients across verticals and geos reaffirm their confidence in our Digital and AI offerings."
"Our new deal bookings were healthy during the quarter at $2.1 billion with wins across services and software. We are positioning ourselves for a future that is transformative, with AI empowering businesses and employees. We continue to see growing demand for our AI led propositions across services and software offerings," he added.
"HCLTech delivered yet another strong quarter with INR revenue of Rs 29,890 crore (up 3.6% QoQ and 5.1% YoY). Our razor-sharp focus on achieving topline growth with healthy margins is reflected in our highest ever EBIT of Rs 5,821 crore and Net Profit of Rs 4,591 crore this quarter. Q3 EBIT margins came in at 19.5% (up 93 bps QoQ). LTM Return on Invested Capital (ROIC) continues its growth trajectory and stands at 36.6% for the company (up 385 bps YoY), and at 44.7% for Services (up 455 bps YoY). Cash conversion (on LTM basis) continues to outpace our 5-year FCF/NI average of 126% with FCF/NI of 134% this quarter. This has further strengthened our Balance Sheet, helping us end the quarter with our highest ever cash balance of Rs 27,707 crore," said Shiv Walia, Chief Financial Officer, HCLTech.
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