HCL Q3 profit grows 31.1% to Rs 3,982 cr on momentum in digital, cloud segments

IT major HCL Technologies has posted 31.1 per cent year-on-year rise in net profit at Rs 3,982 crore for the December 2020 quarter, the company informed the stock exchanges on Friday. On a Q-o-Q basis, HCL's profit grew 26.7 per cent, while its topline was higher by 3.8 per cent from the previous quarter. The HCL Tech Board of Directors has declared an interim dividend of Rs 4 per equity share for the financial year 2020-21.

The IT major had registered a net profit of Rs 3,037 crore in the October-December 2019 quarter (as per US GAAP).

HCL's revenue grew 6.4 per cent to Rs 19,302 crore in Q3 as compared to Rs 18,135 crore in the corresponding quarter last year. HCL Technologies has posted revenue growth in constant currency at 3.5 per cent on quarter-on-quarter basis, which is higher than its estimate of 1.5-2.5 per cent sequential rise.

In its revenue growth guidance, HCL Technologies has upped it from 1.5-2.5 per cent to 2-3 per cent in constant currency for the fourth quarter. "We posted a strong financial performance in Q3 FY''21 with a constant currency revenue growth of 3.5 per cent sequentially and 1.1 per cent year-on-year and an EBIT of 22.9 per cent. This solid performance was driven by a robust momentum in our Mode 2 and Mode 3 businesses led by Digital, Cloud and Products & Platform segments," HCL Technologies President and CEO C Vijayakumar said.

He said the results reflect success of strategic investments the company made over the years including unique ecosystem constructs with all cloud hyperscalers, organic and inorganic investments in a broad-based IP and platforms portfolio and an enterprise digital transformation value proposition. "I am also delighted to share that we crossed $10 billion in revenues in 2020. This is a pivotal milestone for us as a company and is a result of HCL's vision, our employees' passion and disciplined execution," he added.

Prateek Aggarwal, CFO, HCL Technologies, in CY20, said the company delivered 3.6 per cent growth YoY, both in dollar terms and in constant currency. "For the quarter Q3, it is noteworthy that our EBITDA (on Ind AS basis) stood at 29.1 per cent and Net Income Margin at 20.6 per cent(Rs 3,982 crore)," he added.

Meanwhile, HCL tech stock is trading 1.27 per cent or Rs 13.20 down at Rs 1,014.60 as compared to the previous session close of Rs 1,027.7 on the National Stock Exchange.

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