HCL Tech Q1 profit grows 9% to Rs 3,213 crore; declares Rs 6 per share dividend

HCL Technologies, in its April-June quarterly financial results, declared today, reported a 9.4 per cent in net profit on a year-on-year basis at Rs 3,213 crore compared to Rs 2,935 crore in the year-ago period.
HCL Tech's revenue from operations stood at Rs 20,068 crore as against Rs 17,842 crore in Q1 FY21.

EBITDA (income with interest, taxes, depreciation, and amortisation) for Q1 FY22 stood at RS 4,908 crore, a 12.5% growth on a YoY basis, while EBIT (earnings before interest and taxes) has been recorded at Rs 3,931 crore, a 7.4 per cent rise on a YoY basis.

The company added eight new clients $50 million-plus category; 11 in $20 million-plus; 10 in $10 million-plus; and six in $5 million-plus category.

IT services attrition (on last twelve month basis) stood at 11.8 per cent in Q1, down from 14.6 per cent last year, which reflects the effectiveness of increased employee engagement initiatives and large scale upskilling programmes, HCL said in a statement.

The total headcount at HCL stood at 176,499, with a net addition of 7,522 during the quarter. HCL has also declared a dividend of Rs 6 per share, and it's the 74th consecutive quarter of dividend pay-out by the tech services company.

HCL Tech said it expects revenue to grow in double digits in constant currency for FY'22. EBIT margin is expected to be between 19 per cent and 21 per cent for the financial year.

"I believe that the experiences of the pandemic will foster greater adaptability and a spirit of innovation. Aided by the accelerated adoption of technology and leveraging the tenacity of people, the world will emerge as a better place. At HCL, we believe in purpose-driven growth, unifying social responsibility with our business goals," said Shiv Nadar, Chief Strategy Officer, HCL Technologies.

CEO C Vijayakumar said: "We remain very confident of a good QoQ growth for the rest of this year, enabled by 37% YoY growth in bookings and 7,500+ net hiring this quarter."

CFO Prateek Aggarwal said during the quarter, HCL paid out Rs 4,341 crore of dividend, post which its net cash stood $2,053 million at the end of the quarter.

In the previous quarter, HCL Technologies had reported a 6.1 per cent year-on-year (YoY) fall in its net profit at Rs 2,962 crore. HCL Tech stock plunged 0.31 per cent today to Rs 1,001.9 on the National Stock Exchange from its previous session close of Rs 1,005.

Also read: HCL Tech Q4 results: Net profit down 6.1% at Rs 2,962 crore