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HCL Tech Q3: Net profit falls 13.6%; board approves interim dividend of Rs 10

HCL Tech Q3: Net profit falls 13.6%; board approves interim dividend of Rs 10

The IT major's revenue rose 15.7% YoY to Rs 22,331 crore in the said quarter as against Rs 19,302 in the same quarter last fiscal.

HCL Tech Q3 results HCL Tech Q3 results

HCL Technologies on Friday reported a 13.6% year-on-year fall in consolidated net profit at Rs 3,442 crore for the quarter ending 31 December, 2021. The IT major had posted a net profit of Rs 3,969 crore in the year-ago period. However, the company added that PAT for Q3FY21 was higher by $59.4 million (Rs 438 crore) due to reversal of a prior years’ tax provision due to change in the method of calculating a tax deduction, basis evaluation of judicial rulings.

Excluding this, PAT for Q3 FY22 is down 4.7% YoY in dollar terms (down 2.9% YoY in INR terms), the company said in a regulatory filing.

The company's revenue rose 15.7% YoY to Rs 22,331 crore in the said quarter as against Rs 19,302 crore in the same quarter last fiscal. Sequentially, the revenue rose 8.1% and net profits grew 5.4%.The EBITDA margin stood at 23.4% and the EBIT margin at 19.0%, the company said.

In constant currency terms, revenue growth stood at 7.6% QoQ, highest in the last 12 years, the company further stated

The IT major stated that it expects revenue to grow in double digits in constant currency (CC) for FY22. EBIT margin expected to be between 19% and 21% for current fiscal.

The company's board also approved an interim dividend of Rs 10 per equity share of Rs 2 for FY22.

The gross cash stands at $2,666 million and net cash at $2,140 million at the end of December 31, 2021, the company added.

Total Contract Value (TCV) of new deal wins was at USD 2,135 million in the latest December quarter, up 64 per cent year-on-year (y-o-y).

Commenting on the quarterly results, C Vijayakumar, Chief Executive Officer & Managing Director, HCL Technologies Ltd, said. " “We have delivered all round stellar performance this quarter with a revenue growth of 7.6% in constant currency QoQ, the highest recorded in the last 46 quarters. Our Products & Platforms segment led the growth with 24.5% followed by Engineering and R&D Services with 8.3% and IT & Business Services with 4.7%, all in QoQ cc. Our future looks bright as we had a very strong net new booking of $ 2.1B, a 64% YoY increase."

"We also added more than 10,000 to our employee strength this quarter. I believe we continue to be in a vantage position to address sustained demand momentum as our investments on strategic priorities like digital, cloud & engineering capabilities and our talent development plans are showing strong returns," he added.

Roshni Nadar Malhotra, Chairperson, HCL Technologies, said, “We are in the disruption phase of our lives, and the world has been dramatically reshaped and transformed. Technology has become all pervasive, in our homes, and livelihoods, and is the epicenter of our lives."

At the end of December quarter, HCL had 1,97,777 employees with net addition of 10,143 people while attrition for IT services (on the last 12-month basis) was at 19.8 per cent.

Attrition excludes involuntary attrition and digital process operations.

Shares of HCL Tech were performing under pressure ahead of the quarterly results announcement and closed at Rs 1,337.55 apiece on BSE on Friday.