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HCL Tech Q3FY21: Revenue reaches $10 billion-mark; FY21 guidance at 2-3%

The company also raised its full-year revenue guidance to 2-3 per cent and EBIT margin guidance to 21-21.5 per cent for FY21 in constant currency (CC) terms. It also factored in the revenues from the recent acquisition of Australian IT firm DWS

Rukmini Rao | January 15, 2021 | Updated 17:23 IST
HCL Tech Q3FY21: Revenue reaches $10 billion-mark; FY21 guidance at 2-3%
The third largest IT services provider also crossed $10 billion in revenues

Noida-based IT company HCL Technologies posted $2,617 million in revenues in December quarter, resulting in a sequential dollar revenue growth of 4.4 per cent. The company also raised its full-year revenue guidance to 2-3 per cent and EBIT margin guidance to 21-21.5 per cent for FY21 in constant currency (CC) terms. It also factored in the revenues from the recent acquisition of Australian IT firm DWS.

The third largest IT services provider also crossed $10 billion in revenues. C Vijayakumar, President & CEO, HCL Tech said that 3.5 per cent CC was a result of the strategic bets placed by the company. "This time we have classified $25 million and above as transformational deals and this booking is 13 per cent higher than December quarter in 2019," he added.

HCL Tech said that it continues to see a strong pipeline of deals and is confident of acceleration of booking in the coming quarters. Q3 growth was primarily led by Mode 2 which saw revenue growth of 10.9 per cent sequentially largely driven by good traction in the cloud native and digital programs. In Q3, HCL Tech won 13 transformational deals across industry verticals, including life sciences and healthcare, technology and financial services and launched 15 new product releases including HCL Volt MX, HCL Unica v12.1 Fall Release, HCL Sametime Premium, and HCL Digital Experience Fall Release.

The company's net income stood at $1781 million, up 19.8 per cent YoY. "The tax expense is one of the factors which has driven the profit after tax higher in the quarter because of lower dues to reversal of provisioning and a technical measurement reduction due to change in the method of tax calculation," said CFO Prateek Aggarwal. He further added that both IT and business service and products and platform segments were back at pre-COVID peak and at the overall company level that HCL Tech was above the pre-COVID peak growing at 1.2 per cent on a year-on-year basis.

With the IT Services Attrition (LTM) at 10.2 per cent and a net addition of 6,597 during the quarter, HCL's total head count stood at 159,682 at the end of December quarter and localisation in the US is 69.8 per cent. The company also announced a dividend of Rs 4 per share for the quarter.

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