HCL Tech Q1 profit rises 10% YoY to Rs 3,214 crore, revenue comes in at Rs 20,068 crore

The company's total headcount stood at 1,76,499 with a strong net addition of 7,522 during the quarter.

IT player HCL Technologies on July 19 posted a 9.9 percent year-on-year (YoY) rise in its June quarter consolidated net profit at Rs 3,214 crore.

Revenue for the quarter came in at Rs 20,068 crore, up 12.5 percent YoY.

Sequentially (quarter-on-quarter), profit rose 8.5 percent while revenue increased 2.2 percent.

The company's Q1FY22 results failed to meet market estimates as a CNBC-TV18 poll of analysts had estimated the company's profit at Rs 3,253 crore and revenue at Rs 20,303 crore.

EBITDA margin was 24.5 percent while EBIT margin stood at 19.6 percent for the said quarter.

Revenue in constant currency (CC) terms grew 0.7 percent QoQ and 11.7 percent YoY.

Revenue in dollar terms came in at $2,720 mn, up 0.9 percent QoQ and 15.5 percent YoY. Net income stood at $436 mn, up 6.4 percent QoQ and 12.8 percent YoY.

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Segment-wise, IT and business services grew 13 percent YoY while engineering and R&D services grew 10.7 percent and products & platforms increased 6 percent YoY.

The company's total headcount stood at 1,76,499 with a strong net addition of 7,522 during the quarter.

Q1 TCV of new deal wins stood at $1,664 mn, witnessing a 37 percent YoY growth, enabled by 8 large services deal wins and 4 significant product wins, HCL Tech said.

The company also declared a dividend of Rs 6 per share.

HCL Tech expects revenue to grow in double digits in constant currency for FY22. EBIT margin is expected to be between 19 percent and 21 percent for FY22, the company said.

"We posted 11.7 percent YoY revenue growth in constant currency and 29 percent YoY growth in Mode 2 services in constant currency headlined by Cloud and Digital transformation deals. We remain very confident of good QoQ growth for the rest of this year, enabled by 37 percent YoY growth in bookings and 7,500+ net hiring this quarter," said C Vijayakumar, Chief Executive Officer, HCL Technologies.

"Our OCF & FCF yields remain amongst the highest among peers at 6.2 percent and 5.5 percent, respectively. During the quarter, we paid out Rs 4,341 crore ($588m) of dividend, post which our net cash was at $2053m at the end of the quarter," said Prateek Aggarwal, CFO, HCL Technologies.

As of July 19 close, shares of HCL Tech have gained about 6 percent on BSE in the calendar year 2021 so far, against a 10 percent rise in the benchmark Sensex.