HCL Declares Salary Hike For All 1.5 Lakh Employees; 200% Dividend To Shareholders!

Amidst the COVID-19 resultant economic crisis, on Friday, HCL Technologies recorded a 7.3%  Quarter-on Quarter (QoQ) hike and a total of 18.5% jump in the net profit at Rs 3,142 crore for Q2 of FY2020-2021.

The profit was expected at Rs 3,046 crore, according to CNBC-TV18 poll. 

In the Q2 for FY2019-2020, the IT behemoth had reported a net profit of Rs 2,651 crore (as per US GAAP), HCL Technologies said in a regulatory filing.

Read on to know more…

HCL Signs More Transformational Deals As Net Profit Increases!

HCL Technologies had posted a net profit of Rs 2,925 crore in the Q1 of FY2020-2021. 

Rupee revenue increased 4.2% QoQ at Rs 18,594 crore against Rs 17,841 crore in the quarter that ended in June 2020. 

The Earnings before interest and tax (EBIT) margin was at 21.6% against 20.5%, QoQ. This figure is the highest recorded in the last 5-years.

The FY21 EBIT margin guidance increased from 19.5-20.5% to 20-21%. 

HCL Technologies has seen constant currency revenue growth at a 1.5-2.5% increase quarter-on-quarter and has guided the same for Q3 and Q4. However, in Q2, the company reported revenue growth at 4.5% quarter-on-quarter in constant currency-higher than the average estimate. 

The company held a dollar revenue growth of 6.4% at 2,507 million. 

For FY 2020-2021, the board of directors announced an interim dividend of Rs 4 per equity share of Rs 2 each of the company.

The IT behemoth has signed 15 transformational deals in the quarter that ended in September 2020. At the end of Q2, HCL had over 1.53 lakh employees.

HCL To Hike Salaries of Employees!

HCL Technologies President and CEO C Vijayakumar said, “We have delivered a stellar Q2 performance with a sequential revenue growth of 4.5 per cent in constant currency and 21.6 per cent EBIT margin.” 

He also added that this growth momentum was driven by continued leadership in Digital Transformation and Cloud businesses and strong stability in the Products and Platforms segment, all of which continue to open diverse growth avenues for the company.

Vijaykumar also said, “Our investments over the last few years in next-gen technologies have held us in good stead during these difficult times and position us strongly to leverage the emerging market opportunities.”

HCL Technologies will raise salaries for select staff from October and for others from January 2021, said Vijaykumar.