HCL Hires 8359 Employees In 90 Days; But 23.8% Employees Resigned In Same Period

HCLTech, formerly HCL Technologies, added 8,359 employees in the July to September quarter.

300% growth in numbers

This is up 300 percent from the last quarter in which it had made a net addition of 2,089 employees.

However, it is also much lower compared to around 11,135 employees hired in the first quarter of last fiscal.

Its total headcount now stands at 219,325.

Of these, 29 percent are women.

Attrition

Attrition rate remained constant at 23.8 percent as in the June ended quarter.

The company said that it was voluntary.

But it is still much higher than 15.7 percent in the same quarter last fiscal.

HCLTech had recently laid off 350 employees globally since the project they were working on, its client Microsoft’s news-related products, wasn’t renewed.

Fresher addition

Fresher addition figure stood at 10,339, which was slightly lower than the previous target of 10,400 for Q2.

But it managed to be the highest number of freshers the company added in a single quarter in its history.

It had added 6,023 freshers in Q1FY23, nearly doubling the number as compared to Q1FY22.

CEO and MD C Vijayakumar had said that the company overall intends to add about 30,000 freshers this fiscal.

It had previously said it plans to hire 45,000 new employees in FY23.

Consolidated net profit

Its Q2FY23 earnings, consolidated net profit for the quarter increased 7.05 percent to Rs 3,489 crore from Rs 3,259 crore as of the same quarter last year.

Operations revenue stood at Rs 24,686 crore, clocking a 19.5 percent growth over Rs 20,655 crore last year.

In Constant Currency terms, the revenue was up 3.8 per cent QoQ and 15.8% YoY, the exchange filing said.

Beating margin forecasts

Its margin rose 100 basis points (bps) to 17.93 percent. 

This beat Street estimates that the company’s operating margin would rise to 17.4 percent despite wage hike pressure.

FY2023 Guidance

• Services Revenue expected to grow 16 per cent –17 per cent YoY in Constant Currency
• Revenue guidance increased to 13.5 per cent –14.5 per cent YoY in Constant Currency
• EBIT margin guidance revised to 18 per cent–19 per cent