HCLTech Q1 results: Net profit rises 7.6% to Rs 3,534 cr; firm declares Rs 10 dividend

IT major HCLTech Ltd on Wednesday reported 7.6% rise in consolidated net profit at Rs 3,534 crore for the quarter ending June 30, 2023 as against Rs 3,283 crore in the year-ago period helped by strong deal momentum despite a challenging macroeconomic environment.

The company's consolidated revenue rose 12% to Rs 26,296 crore in Q1FY24 as against Rs 23,464 in the year-ago period.

The company announced interim dividend of Rs 10 per equity share.

"The Board of Directors has declared an Interim Dividend of Rs 10 per equity share of Rs 2 each of the Company for the Financial Year 2023-24," said HCLTech in a stock exchange filing.

On Wednesday, HCL Tech's scrip on BSE closed 0.7% lower at Rs 1,106.5.

“In Q1FY24, our revenue and people strength sequentially moderated in line with the demand environment. These large deals helped offset cuts in discretionary spending in these verticals. We are expecting other verticals to pick up as well shortly,” said C Vijayakumar, CEO and MD, HCLTech.

The IT firm's total headcount as of June end was 2,23,438, down by 2,506. The company, however, added 1,597 freshers during the June quarter.

The company retained its guidance of 6-8% constant currency revenue growth for FY24, and operating margin at 18-19%.

Unlike TCS that took a margin hit to reward employees, HCLTech deferred annual pay reviews of its staff by a quarter.

The company, which had new deal wins worth a total contract value of $1.57 billion in the quarter, said it was optimistic about deal pipeline conversion for the year.