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HCL Tech net profit rises 3.9% to Rs 3,265 cr for July-Sept quarter

HCL Tech net profit rises 3.9% to Rs 3,265 cr for July-Sept quarter

In its FY 2022 guidance, HCL Tech says its revenue is expected to grow in double digits in constant currency, while EBIT margin is expected to be between 19 per cent and 21 per cent.

The revenue in constant currency grew 3.5 per cent QoQ and 10.5 per cent YoY. Photo: Reuters The revenue in constant currency grew 3.5 per cent QoQ and 10.5 per cent YoY. Photo: Reuters

 HCL Technology has reported a net profit of Rs 3,265 crore for the July-September quarter, recording a growth of 1.6 per cent on quarter-on-quarter (QoQ) and 3.9 per cent growth on a year-on-year (YoY) basis.

The company's revenue grew 2.9 per cent QoQ and 11.1 per cent YoY to Rs 20,655 crore. The revenue in constant currency terms grew 3.5 per cent QoQ and 10.5 per cent YoY. The EBITDA margin for the said quarter stood at 23.4 per cent, while the EBIT margin was recorded at 19 per cent.

In its FY 2022 guidance, HCL Tech said the company's revenue is expected to grow in double digits in constant currency, while EBIT margin is expected to be between 19 per cent and 21 per cent.

C Vijayakumar, Chief Executive Officer & Managing Director, HCL Tech, said the company signed "14 large new deals, which helped us to record net new booking of $2.3 billion, a growth of 38 per cent YoY".

Roshni Nadar Malhotra, Chairperson, HCL Technologies Ltd, said in the months ahead, HCL will further accelerate its actions and investments in emerging technologies, people and ESG (environmental, social, and governance).

In a stock exchange filing, HCL said it reported a strong booking performance, with Q2 total contract value of new deal wins at $2,245 million, registering 38 per cent YoY growth. This included 14 net new large deal wins. The company's Q2 revenue growth, powered by services revenue stood 5.2 per cent QoQ and 13.1 per cent YoY in constant currency terms (cc).

Engineering and R&D services grew at 12.7 per cent YoY cc, while IT and business services grew a 13.2 per cent YoY cc, driven by acceleration in application modernisation and cloud transformation deals, the company said.

HCL Tech's $100 million+ client category grew by 1; $50 million+ by 12; $20 million+ by 18; $10 million+ by 18; and $5 million+ by 12 in Q2. Hiring also continued at a brisk pace, it said, with net addition of 11,135 during the quarter. Total headcount by September 30 stood at 187,634, HCL said.

HCL also declared a dividend of Rs 10 per share for Q2, being 75th consecutive quarter of dividend pay-out. The company stock closed at Rs 1,246, down 19.35 or 1.53 per cent, as compared to the previous session close of Rs 1,265.35 on the National Stock Exchange.

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