HCL Tech Q2 results: Net profit rises 7% to Rs 3,489 crore

HCL Technologies on Wednesday reported 7.05 per cent year-on-year (YoY) rise in consolidated net profit at Rs 3,489 crore compared with Rs 3,259 crore in the same quarter last year. 

The consolidated revenue for the quarter rose 19.5 per cent YoY to Rs 24,686 crore from Rs 20,655 crore in the same quarter last year. Dollar revenue for the quarter came in at $3,082 million, up 10.4 per cent YoY (up 1.9 per cent QoQ). Revenue growth in constant currency (CC) terms stood at 15.8 per cent YoY (3.8 per cent QoQ).
 
Ebit margin for the quarter came in at 18 per cent against 17 per cent in June quarter and 19 per cent in the year-ago quarter.     

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HCL Tech has guided for a Service segment CC revenue growth of 16–17 per cent YoY in FY23. Overall, it sees CC revenue for the IT firm to rise 13.5–14.5 per cent YoY in FY23. EBIT margin guidance has been revised to 18–19 per cent. 

The Noida-based firm said it won 11 large deals during the quarter, including eight in Services and three in Products segments. Overall, total contract value bookings (new deal wins) stood at $2,384 million, up 6 per cent YoY (16 per cent QoQ).

CEO & Managing Director C Vijayakumar said: "Our bookings and pipeline continue to be very strong, that augurs well for our future growth. These reflect our constant and continuing efforts to supercharge outcomes for all our stakeholders."

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The company board declared an interim dividend of Rs 10 per share.

Chief Financial Officer Prateek Aggarwal said his company significantly improved EBIT margin sequentially, led by operating leverage and efficiencies, despite impact of salary increments. 

"Our H1 growth & deal wins lead us to increase our revenue guidance to 16-17 per cent for services and
13.5-14.5 per cent at company level, reflective of our strong growth visibility. Our EBIT guidance is now in a narrower range of 18-19 per cent. Our cash flow generation continues to be robust with OCF at
$ 2,049 million, being 114 per cent of net income," it said.

Net addition in headcount for the quarter stood at 8,359, with the overall headcount standing at 2,19,325, HCL Tech said. Attrition at the IT major came in at 23.8 per cent (voluntary) in IT Services. The IT firm said it added a total of 10,339 freshers during the quarter. 

Earlier, shares of HCL Tech closed the day at Rs 951.65, up 1.39 per cent.