HCL Tech Q3 results: Profit rises 19% to Rs 4,096 crore, Rs 10 dividend announced

HCL Technologies (HCL Tech), India's third largest software exporter, on Thursday reported a 19 per cent year-on-year (YoY) rise in net profit at Rs 4,096 crore for the December quarter compared with Rs 3,442 crore in the same quarter last year.

The C Vijayakumar-led company said its revenue for the quarter rose 19.6 per cent YoY to Rs 26,700 crore compared with Rs 22,331 crore in the year-ago quarter. Dollar revenue for the quarter came in at $ 3,244 million, up 5.3 per cent QoQ and 9 per cent YoY Revenues in constant currency terjms rose 5 per cent QoQ and 13.1 per cent YoY.

EBIT margin for the quarter came at 19.6 per cent, up 165 basis points sequentially.

Dividend announced

The company board declared an interim dividend of Rs 10 per share. This, the company claimed, was 80th consecutive quarter (20 years) of dividend pay-out. The record date for the payment of the aforesaid interim dividend has been fixed at January 20. The payment date is February 1.

Guidance

HCL Tech has guided for FY23 revenue growth (constant currency terms) in the 13.5-14.0 per cent range terms. FY23 services revenue in CC terms is expected to be in the 16-16.5 per cent range. EBIT margin guidance has been narrowed to 18– 18.5 per cent, HCL Tech said in a press release.

CEO & Managing Director Vijayakumar said his company delivered a strong performance across all key metrics – revenue growth, margin expansion, booking growth and people metrics.

"Our strong revenue growth of 13.1 per cent YoY CC is led by our Services business, which grew 15.4 per cent YoY in CC terms; and strong revenue growth of 5 per cent QoQ CC is led by HCLSoftware. Our margins at 19.6 per cent this quarter, increased 60 basis points YoY," Vijaykumar said.

Order wins

Vijaykumar said new deal bookings for the quarter stood at $ 2.35 billion, up 10 per cent YoY. HCL Tech said it won 17 large deals during the quarter, which included seven deals in Services and 10 in Software. Average contract value was up 1.9 per cent YoY, it said.

"The booking growth was led by IT operating model transformation, cloud adoption and large vendor consolidation deals. We are confident to deliver industry leading growth over the medium term supercharged by our positioning, our strong propositions and our passionate people," he said.