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HCL Tech share falls 3% post Q4 earnings

HCL Tech share falls 3% post Q4 earnings

IT services major HCL Technologies reported a 25.6 percent sequential decline in net profit at Rs 2,962 crore for the quarter ended March 2021

HCL Technologies' stock hit an intra-day low of Rs 924 on BSE on Monday, April 26 HCL Technologies' stock hit an intra-day low of Rs 924 on BSE on Monday, April 26

Shares of HCL Technologies tanked over 3 per cent intra-day in today's session post its March quarter earnings. The stock hit an intra-day low of Rs 924 on BSE.

The company reported a 25.6 percent sequential decline in net profit at Rs 2,962 crore for the quarter ended March 2021. Profit was down 6.1 per cent on a Year on Year (YoY) basis. The company had clocked a net profit of Rs 3,982 crore in the quarter ended December 31. Revenue from operations in Q4 stood at Rs 19,642 crore, up 1.8 per cent sequentially and up 5.7 per cent on a year-on-year (YoY) basis.

Also Read: HCL Tech posts 1.1% growth in FY21, clocks record deal wins in Q4

"We have posted a robust Q4FY21 sequential constant currency revenue growth of 2.5 per cent. Our FY'21 Revenue stands at $ 10.175 billion, a growth of 2.4 per cent YoY and a Net income growth of 13.2 per cent YoY (ex milestone bonus)," said C Vijayakumar, President & CEO.

"The company has registered the highest ever New deal booking this quarter of $ 3.1 billion with an all-time high exit pipeline. The booking and pipeline represent a well-balanced mix of service lines, geographies and industries," he added.

"FY'21 has been an unprecedented year by all yardsticks. In this pandemic year, HCL was able to support clients not only to run their businesses, but also to digitize & modernize their Applications & Operations. In doing so, we delivered 2.4 per cent growth in US $ and EBIT at 21.4 per cent (ex milestone bonus), expanding 180 bps on YoY basis," said Prateek Aggarwal, Chief Financial Officer.

Also Read: HCL Tech shifts workload to other geographies to tackle COVID challenges in India

He further stated that the best part of the year was the strong Operating Cash Flow generation at US $ 2,602 Mn, Up 49 per cent YoY, and Free Cash Flow generation at US $ 2,340 Mn, Up 58 per cent YoY. The board has also declared a special interim dividend of 10/- per share as a milestone to mark the company crossing the $10 billion milestone, apart from the usual quarter dividend.

The IT major has won 19 new large deals in Q4FY21 across industry verticals, including financial services, life sciences, and healthcare, consumer goods, and manufacturing. The company expects FY22 revenue to grow in double digits in constant currency and expects an EBIT (earnings before interest and tax) margin between 19.0 per cent and 21 per cent.