India’s third largest IT services firm HCLTech on January 12 reported a 6.23 percent year-on-year (YoY) growth in net profit at Rs 4,351 crore for the third quarter of the current financial year. This came despite higher-than-expected furloughs, with BFSI and hi-tech being the problem areas.
Sequentially, net profit was up by 13.51 percent, helped by $50-million incremental revenue from the Verizon deal and additional income from Germany’s ASAP post-acquisition.
Consolidated revenue for the quarter grew 6.54 percent YoY at Rs 28,446 crore as compared to Rs 26,700 crore in Q3FY23. It was way above Moneycontrol’s estimates of Rs 26,026 crore.
The company reduced its revenue growth guidance for full year FY24 from the previous quarter at 5-6 % YoY in constant currency terms to now 5-5.5%. This is including ASAP acquisition. In Q1, revenue growth guidance was 6-8%.
HCL Tech also retained earlier full-year margin guidance of 18-19 percent for FY24. Operating margin came in at 19.8%, beating company guidance range. Operating margin was up by 130 bps QoQ.
C Vijayakumar, CEO and MD, HCLTech said, "Our results this quarter have been remarkably strong with a revenue growth of 6.0% QoQ In CC driven by strong momentum in both services and software businesses."
He added that the company continues to invest in Al, specifically generative Al as well as cloud native capabilities across our products and services to address evolving client needs.
"In an uncertain demand environment, we remain confident of our continued growth momentum enabled by our business mix, our people and laser-sharp focus on delivering Innovation and hyper-automation to our clients," he said.
The company's board of directors declared an interim dividend of Rs 12 per equity share for the financial year 2023-24.
The company’s net new deals total contract value (TCV) for the quarter stood at $1.92 billion, down from last quarter’s $3.96 billion. In the same quarter last fiscal year, HCLTech’s TCV stood at $2.34 billion.
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