HCLTech confident in maintaining 18-19% margins amid wage hike uncertainty

HCL Technologies reported a 20.46 percent year-on-year (YoY) increase in consolidated net profit to Rs 4,257 crore for the quarter ending June 2024.

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26 Aug, 2025 12:21

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HCLTech's management said they remain optimistic about sustaining an 18-19 percent margin despite potential wage increases planned for either Q2 or Q3 of the fiscal year.

Prateek Aggarwal, chief financial officer of HCLTech, acknowledged the uncertainty surrounding the timing and extent of the wage hike, describing it as a "work in progress." Aggarwal in the company's Q1FY25 earning conference call said that the company will make a decision on wage hike during the quarter.

However, he said that Q1 typically shows softer top-line results, followed by a pickup in Q2.

Also read: HCL Tech Q1 Results Highlights: Confident financial services will bounce back after Q2, says CEO

HCLTech retained its constant currency revenue growth guidance for FY25 in the range of 3-5 percent. For FY2024, the company's guidance was in the range of 5-5.5 percent.

HCL Technologies reported a 20.46 percent year-on-year (YoY) increase in consolidated net profit to Rs 4,257 crore for the quarter ending June 2024. Sequentially, the net profit rose 6.8 percent from Rs 3,985 crore in the March quarter. Revenue for the reporting period increased 6.70 per cent YoY to Rs 28,057 crore from Rs 26,296 crore in the previous fiscal.

The company reported total contract value of $1.96 billion in Q1, an increase on a YoY basis but a decline on a sequential basis. In Q4, HCLTech's new deal wins stood at $2.29 billion, while the metric stood at $1.57 billion in Q1FY24.

Additionally, HCLTech's board has also announced an interim dividend of Rs 12 per equity share of Rs 2 each for FY2025. The results for Q1FY25 were announced post market close. At close, the stock was trading at Rs 1,561.75, around 3.3 percent higher than open. The stock has gained around 40.63 percent over the last one year.

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