HCL Tech on Thursday reported a jump of 226 per cent year-on-year in its consolidated net profit at Rs 3,593 crore for the quarter ended 31 March, 2022 mostly on strong booking performance and growth across verticals. The company had posted a net profit of Rs 1,102 crore in the year-ago period.
However, due to the impact of deferred tax credit and the one-time milestone bonus paid during Q4FY21, the adjusted net profit during the same period last fiscal stood at Rs 2,962 crore.
Sequentially, the company's net profit saw a growth of 4.3 per cent in Q4FY22 from Rs 3,442 crore in the previous December quarter (Q3FY22).
Revenue from operations also grew 15 per cent YoY to Rs 22,597 crore for the fourth quarter as against Rs 19,641 crore in the same quarter last fiscal.
Under its FY23 guidance, the company stated that its expects revenue to grow between 12 per cent to 14p per cent in constant currency. EBIT margin expected to be between 18 per cent to 20 per cent.
Further, HCL Tech also added that the board has declared an interim dividend of Rs 18 per equity share of Rs 2 each for the financial year 2022-23. The record date of April 29, 2022 fixed for the payment of the aforesaid interim dividend has been confirmed by the board. The payment date of the said interim dividend shall be May 11, 2022.
The quarter also saw strong booking performance with total contract value of new deal wins at $8,308 million, registering 14 per cent YoY growth. TCV of new deal wins came at $2,260 million for Q4, registering 6 per cent QoQ growth, it added.
In terms of employee headcount, the company said that the full-time headcount is 208,877 while the net hiring was 11,000 globally for the quarter ending March 2022 and 39,900 for the year ending March 2022. Of these, 28 per cent of global employees are women, 165 nationalities represented.
Around the year, the company employed 23,000 freshers at entry-level. It also added that localization in the US stood at 70.9 per cent, Europe stood at 80.5 per cent and APAC and rest of the world (excluding India) at 88.9 per cent.
Commenting on the results, Roshni Nadar Malhotra, Chairperson said, “Our core beliefs of innovation and collaboration, driven by a strong faith in humanitarian values, have stood us well in these fast-changing times. Clients worldwide see HCL Technologies as their partner of choice to drive business outcomes with our leading-edge technology services, solutions and products. We remain committed to transforming lives and uplifting marginalized communities through the work and perseverance of the HCL Foundation."
“We have delivered yet another stellar quarter in our services business, where the revenue is up 5% QoQ & up 17.5% YoY in constant currency. Over the last three quarters, our Services business has been consistently growing organically at 5% and higher, delivering one of the highest CQGR in the industry. Our overall growth on YoY basis stands at 12.7% which is better than the guidance led by strong momentum in Digital, Cloud and Engineering services. We continue to invest proactively to create a larger talent pool to address the demand”, said C Vijayakumar, Chief Executive Officer & Managing Director.
Furthermore, Prateek Aggarwal, Chief Financial Officer added, "We ended FY22 well, with revenue at $11.5 billion (Rs 85,000 crore), growth of 12.7% YoY in constant currency, and EBIT margin at 18.9%. Services revenue (ITBS and ERS) crossed the $10 billion milestone and registered a robust growth of 14.9% YoY in constant currency during the fiscal... Our cash generation and profit conversion to cash continue to be very strong with OCF at US$ 2,265 mn (125% of PAT) and FCF at US$ 2,044 mn (113% of PAT)."
Shares of HCL tech on Thursday closed 0.92 per cent higher at Rs 1,099.60 apiece on BSE.