Exclusive: Prateek Aggarwal, CFO, HCLTech

IT major HCL Technologies Ltd, India’s third largest IT services firm, reported a 7.6 per cent year-on-year (YoY) growth in net profit in the first quarter of fiscal 2024 ended in June 30. Sequentially, however, net profit was down by 11.2 percent due to ramp downs in deals and verticals like hi-tech and telecom. Net profit for Q1FY24 stood at Rs 3,534 crore, missing analyst estimates of Rs 3,782 crore this quarter. Consolidated revenue for the quarter grew 12 percent YoY at Rs 26,296 crore as compared to Rs 23,464 crore in Q1FY23. The company announced interim dividend of Rs 10 per equity share. “In Q1FY24, our revenue and people strength sequentially moderated in line with the demand environment. These large deals helped offset cuts in discretionary spending in these verticals. We are expecting other verticals to pick up as well shortly,” said C. Vijayakumar, CEO and MD, HCL Tech. The IT firm's total headcount as of June end was 2,23,438, down by 2,506. The company, however, added 1,597 freshers during the June quarter. The company retained its guidance of 6-8% constant currency revenue growth for FY24, and operating margin at 18-19%.