HCLTech beats profit estimates, logs in 11% jump in Q4 net to Rs 3,981 crore

IT major HCL Technologies on April 20 reported consolidated net profit for the quarter ended March 2023 at Rs 3,981 crore, up 10.61 percent over Rs 3,599 crore a year back.

Its revenue from operations for the quarter stood at Rs 26,606 crore, clocking a growth of 17.74 percent from Rs 22,597 crore, the company said in an exchange filing.

The profit figure beat estimates but revenue lagged the projections.

According to a poll of brokerages, HCLTech was expected to report a consolidated revenue of Rs 26,801 crore, up 18.6 percent on-year, while consolidated profit after tax (PAT) was projected to rise by 8.5 percent to Rs 3,898 crore. On a constant currency (CC) basis, the company was expected to report a quarter-on-quarter (QoQ) decline in the range of 1-2 percent.

Constant currency revenue was down 1.2 percent QoQ and up 10.5 percent year on year (YoY). US dollar revenue came in at $3,235 million, up 8.1 percent YoY.  EBIT of the company was at Rs 4836 crore, which was 18 percent of revenue.

“Our pipeline is near all-time high, which reflects our differentiated business mix and strong client demand for our offerings. We have added 3,674 employees this quarter and overall employee strength has now grown beyond 225000. All these set us well in FY24 for a healthy revenue growth in 6-8 percent range with operating margins in 18-19 percent range,” said C Vijay Kumar, CEO & MD, HCLTech.

The Board of Directors also declared an interim dividend of Rs 18 per equity share for the FY24. The record date of April 28, 2023 is fixed for the payment of the aforesaid interim dividend. The payment date shall be May 9, 2023.

Last twelve month (LTM) attrition rate came down to 19.5 percent as jobs in the IT industry has dried up. The same rate was 21.7 percent in the previous quarter.