48,000 HCL Employees Resigned In Last 365 Days; Company Earned Rs 36 Crore Every Day In 90 Days

Today we are going to have a look at the Q1 performance of IT Giant, HCL Technologies. A bit of background on the HCL : headquartered in Noida,  HCL Technologies is an Indian multinational information technology services and consulting company which emerged as a separate entity in 1991 when it entered into the software services business. Prior to it, it was a research and development division of HCL.

Let’s have a look at the financial performance of HCL in Q1. 

performance of HCL in Q1. 

Q1 Performance 

The IT Major saw an 2.4 YoY increase in the net profit of Rs 3,283 crore. However, it was down 8.6 per cent sequentially. 

Increased by 16.9 per cent YoY, the revenue for Q1 stood at Rs 23,646 crore. Revenue saw a growth of 3.8 per cent sequentially.

At 12-14% growth, the company maintained its FY23 revenue guidance. Speaking in dollar terms, revenue grew 11.2 per cent YoY and 1.1 per cent sequentially. 

The total contract value (TCV) saw a growth of 23.4 per cent YoY and stood at $2 billion. 

Out of the total, the services business had a TCV of $1.95 billion and product TCV was at $104 million.

With an increase of 23% yoy and 3.7%, it was the engineering and R&D segment respectively which came out to be the growth driver for the company. Whereas the IT and services business grew by 18.1 per cent YoY.

Highest TCV Ever : CEO, MD

C Vijayakumar, chief executive officer (CEO) & managing director (MD), HCL Technologies said that the company has signed the highest TCV ever and the same reflects the confidence for FY23. He added that “Our services business continues to have robust growth momentum, growing at 2.3 per cent quarter-on-quarter and 19 per cent YoY in constant currency. It was driven by our digital engineering and digital application services with Cloud adoption being a horizontal theme across all services and verticals”.

Due to salary increases, the margin took a hit as EBITDA came in at 21.2 per cent, down 1.7 per cent YoY and down 1.5 per cent sequentially. EBITDA stands for Earnings before interest, taxes, depreciation, and amortization. 

EBITDA is a good measure of core profit trends because it eliminates some extraneous factors and provides a more accurate comparison between companies.

As compared to 21.9 per cent in Q4 of FY22, the attrition for the quarter was at 23.8 per cent. Attrition was at 21.9 per cent in Q4 of FY22 and 11.8 per cent in Q1 of FY22. The company plans to add 30,000-35,000 freshers for FY23.