On Jan 12, a 20% rise in in its consolidated net profit for the quarter ended December 2022 (Q3FY23) has been reported by HCL Technologies.
The number this year stood at Rs 4,096 crore as against Rs 3,442 crore a year back.
The company said in an exchange filing that against Rs 22,321 crore in the corresponding quarter last year, its consolidated revenue from operations increased 19.61 percent to Rs 26,700 crore.
Impressive Numbers Surpass the Estimates
AS according to a poll of brokerage, the numbers beat the estimates as the consolidated revenue was expected to come in Rs 26,026 crore, up 16.6 percent year-on-year (YoY) growth, while consolidated profit after tax (PAT) was estimated to increase 10.6 percent YoY to Rs 3,796 crore.
Revenue in terms of constant currency was up 5 percent sequentially and 13.1 percent year-on-year (YoY).
When it news to the deals this quarter, HCL revealed that it won 17 deals which include – 7 in the services segment and 10 in software.
Up 10% yoy, the total contract value (TCV) of new deal wins was at $2.35 billion.
An interim dividend of Rs 10 per equity share for FY23 was declared by the Board of Directors.
The record date is set as January 20. The Payment date shall be February 1, 2023.
Up by 165 bps sequentially, HCL Tech said the EBIT margin during the quarter was at 19.6 percent.
Revenue Growth Led by Services Business: HCLTech CEO
C Vijayakumar, CEO & Managing Director, HCLTech said that “We have delivered a strong performance this quarter across all key metrics – revenue growth, margin expansion, booking growth and people metrics”.
“Our strong revenue growth is led by our services business which grew 15.4 percent YoY CC. Our margins at 19.6 percent this quarter, increased 60 basis points YoY.”
Providing guidance for FY23, the company said revenue is expected to be between 13.5-14 percent YoY in constant currency. Services revenue is expected to be 16-16.5 percent YoY in constant currency. It said the EBIT margin will likely narrow to 18-18.5 percent.
The last twelve-month attrition rate – a measure of employees leaving the company voluntarily – was at 21.7 percent down from 23.8 percent in the September quarter and higher than 19.8 percent in the December quarter last year.
The company overall added 2,945 employees during the quarter, taking the total headcount to 2,22,270. It also added 5,892 freshers during the quarter.