HCL Tech Q3 Results: 5 key highlights from IT major’s earnings

HCL Tech performance for the quarter ending December encouraged with consolidated net profit at ₹4350  crore growing 6.2% year on year and 13.5 % sequentially . 

The revenues from operations for the IT major at ₹28446 crore also grew 6.5% year -on-year and 6.7% sequentially.

The constant currency revenue growth was at 6.0% sequentially and up 4.3% year on year

Also read- HCL Tech Q3 results: Board approves interim dividend of ₹12 per share. Check record date

The impact of weak macros and seasonal weakness though was visible on HCL technologies deal wins during Q3 and revision of revenue guidance, nevertheless attrition levels saw significant improvement and company managed to maintain its Ebit margins despite general concerns around IT companies of an impact of wage hikes and rise in costs.

HCL technologies also revised  its FY24 revenue guidance to 5-5.% y-o-y

Here are five key highlights of HCL Technologies Q3 scorecard:

1. Revenue and profit numbers

The revenues from operations at ₹28446 crore were up 6.7% sequentially and 6.5% year -on-year.

The revenues in dollar terms at $3415 million rose 5.9% sequentially and up 5.3 % year on year.

HCL technologies consolidated net profit at ₹4350 grew 6.2% year on year and 13.5 % sequentially .

The constant currency revenue growth was up 6.0% sequentially and 4.3% year on year. 

HCL Technologies highlighted that Services constant currency revenues rose 3.1% sequentially and 4.2% year on year led by growth in telecommunications, media, publishing and entertainment.

The services revenues’ crossed annual run rate of $12 billion ( ₹1 trillion). The digital constant currency revenues rose 5% y-o-y contributed 37.7% of services 

Company growth was powered by HCL software cc revenue rose 5% year on year

Also Read-Wipro Q3 Results: PAT down 12% YoY to ₹2,694 crore, revenue drops 4.4% YoY. All you need to know

HCL software annual run rate at $1.06 Billion plus rose 2.1% year on year in constant currency

Profitability and margins– 

Earnings before interest and Tax (Ebit) at ₹5615 crore (19.8% of revenues) rose 13.8% sequentially and was up 7.4% year on year.

The Ebit margins was a slight improvement over 18.5% in the previous quarter. Notably the Ebit margins were slightly better than 19.5% in the year ago quarter

2. Dividend – HCl Technologies declared dividend of ₹12 per share and it was the 84th consecutive quarter of dividend payout, highlighted the company. 

3. Major deals-

The TVC Net Deal wins came at $1927 million. The seasonal impact was visible in the quarter as TCV deal wins declined from $3969 million in the previous quarter. 

HCL Technologies won 18 large deals 6 in services and 12 in Software.

 4. Head count and attrition 

Total people count was at 224,756 which was a net addition of 3,617 people. HCL Tech added 3818 freshers

LTM attrition stood at 12.8% in the third quarter for HCl Technologies which was a decline from 21.7 % in Q3 of last Year and 14.2% in the previous quarter.

5.Revision in FY24 Guidance-

HCL technologies revised its constant currency revenue growth (including ASAP acquisition) to 5-5.5% year-on-year for FY24. This was slight 

At the end of Q2FY24 company had guided for  constant currency revenue growth (including ASAP acquisition) to 5-6% year-on-year for FY24.

HCL technologies has maintained its Ebit margin guidance at 18-19%

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

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Published: 12 Jan 2024, 07:33 PM IST