HCL Technologies (HCLTech) on April 26 reported net profit of Rs 3,986 crore in Q4FY24 as against Rs 3,983 crore in the year-ago period. The IT firm declared Rs 18 dividend.
Net profit for the quarter was up 0.1 percent YoY, and declined by 8.4 percent sequentially. This was a miss on Moneycontrol’s estimate of Rs 4,054.71 crore in net profit.
The company posted a 7.1% increase in revenue at Rs 28,499 crore in Q4FY24 as compared to Rs 26,606 crore in the year-ago period, again a slight miss from Moneycontrol's estimate of Rs 28,552.64 crore. Sequentially consolidated revenue was up by 0.2 percent.
Ebit margin or operating margin for Q4 stood at 17.6 percent, significantly below Moneycontrol’s estimates of 18.8 percent.
Full year revenue came in at Rs 109,913 crores, growing 8.3 percent YoY. This was a 5 percent growth Yoy in constant currency term, in line company’s guidance of 5-5.5 percent growth.
The company slashed its constant currency revenue growth guidance for FY25 to be between 3-5%, down from 5-5.5% in FY24.
Operating or EBIT margins guidance were kept same as FY24 at 18-19%.
FY24 full year EBIT margins stood at 18.2 percent, in line with the company's guidance of 18-19 percent.
On April 26, HCLTech's shares on BSE closed 1.8% lower at Rs 1,477 apiece.
"HCLTech continues to lead the industry in FY24 with good USD revenue growth of 5.4% YoY during challenging times through our strong commitment to our clients and our people. More importantly, we have translated this growth into even higher value creation for our shareholders with our OCF coming at $2,711 mn, up 21.6% YoY and FCF at $2,584 mn, up 27.7% YoY. As we look ahead, global enterprise technology spend will only grow with adoption of AI. We are well positioned to capitalize with our AI led propositions, Global delivery model and ideal mix of technology services and products," said C Vijayakumar, CEO & Managing Director, HCLTech.
The IT firm also announced an interim dividend of Rs 18 per share of Rs 2 face value. May 7, 2024 has been fixed as the record date for payment of the interim dividend.
“HCLTech’s FY24 performance underlines the resilience of our business model with Revenue at Rs 1,09,913 crore, growing 8.3%. We delivered this industry leading growth with EBIT at 20,027 Cr, up 8.4%. Net Income (NI) for the year came in at Rs 15,702 crore, up 5.7%, translating to an EPS of Rs 57.86. Our Board is pleased to declare Rs 18 per share as the dividend for the quarter, bringing the total to Rs 52 per share for FY24, which is 90% of the EPS. Our razor-sharp focus on cash generation resulted in OCF/NI coming
at 143% and FCF/NI at 136%. We continue to expand ROIC, with the company’s ROIC up 341 bps YoY at 33.8% and Services’ ROIC up 430 bps YoY at 41.6%," said Prateek Aggarwal, Chief Financial Officer, HCLTech.
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