HCLTech Q1 FY25 results: Net profit up 20% at Rs 4,257 crore; revenue climbs 7%

Indian IT giant HCLTechnologies Ltd on Friday reported a decent growth during the first quarter of the ongoing financial year (Q1 FY25). It posted a 20.46 per cent year-on-year (YoY) jump in net profit at Rs 4,257 crore for the June quarter compared with Rs 3,534 crore in the same quarter last year.

During the quarter under review, revenue from operations was up 6.70 per cent YoY at Rs 28,057 crore from Rs 26,296 crore in the corresponding quarter last year.

The company's Board has approved an interim dividend of Rs 12 per equity share of Rs 2 each for FY25. "The Record date of July 23, 2024 fixed for the payment of the aforesaid interim dividend has been confirmed by the Board of Directors. The payment date of the said interim dividend shall be August 1, 2024," it stated.

HCLTech's new deal wins stood at $1.96 billion, compared with $1.56 billion a year earlier. The company announced a deal expansion with a value of $278 million over 7.5 years with German bank apoBank, as well as a five-year deal with State Bank of India.

Chief Executive Officer C Vijayakumar said the performance was slightly better than its expectations, and is "confident of decent growth in the coming quarters".

The quarterly results were announced post market hours today. Earlier in the day, HCLTech shares settled 3.20 per cent higher at Rs 1,560.40

Rival Tata Consultancy Services (TCS) Ltd, yesterday, kicked off quarterly earnings season of IT companies on a strong note by posting an 8.72 per cent year-on-year (YoY) rise in net profit, at Rs 12,040 crore, for Q1 FY25 compared with Rs 11,074 crore in the same period last year.

Market was encouraged by TCS Q1 results, which triggered a massive rally in other IT stocks and drove Sensex close towards the 81,000 mark in early trade, said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

However, profit taking in realty and other sectoral stocks trimmed the gains as investors cut their positions amid stretched valuations after the recent spike, Tapse mentioned.