HCL Technologies logs Rs 3,832 crore payment of interim

HCL Technologies, an IT services provider, increased its consolidated net profit by 10% to Rs 3,832 crore for the three months that ended in September. In the prior year, the same was at Rs 3,489 crore. Operational revenue increased by 8% during the quarter to Rs 26,672 crore from Rs 24,686 crore during the same period last year. The board has declared an interim dividend of Rs 12 per equity share for the financial year 2023-24. The payment will be made on October, and the record date for the same has been set as October. Profit and revenue both exceeded expectations. A Now poll put the sales at 26660 crore and the profit around 3,685 crore.

Revenue increased by 3% over the previous year and 1% sequentially in constant currency terms. Services revenue increased 3% (CC) segmentally, while digital revenue increased 4%. EBIT for the firm increased 11% year over year to Rs 4,934 crore in the second quarter. In the second quarter, HCL Tech won 16 large deals - 10 in services and 6 in software - across diverse industries such as life sciences, healthcare, public services, and others. The value of new deal wins (TCV) was at $3.9 billion in the quarter. The company has guided for an organic revenue growth of 4-5% (CC) for FY24, while services revenue growth is seen between 4.5 and 5.5%.

HCL Tech further forecasted its EBIT margin to be between 18 and 19% in fiscal 2024. "Our new bookings of $4 billion this quarter is at an all-time high, driven by standout mega deal. This achievement underscores our ability to seize exceptional opportunities in the market and gives us optimism for our medium-term growth prospects", said C Vijaykumar, CEO of HCL Tech. The company had a total headcount of 221,139 at the end of the September quarter, with a net addition of -2299 employees. The LTM attrition rate for the quarter was 14.2%, which is a reduction from the 23.8% rate for the same quarter the previous year.