HCL Tech’s third quarter profit falls by 13.6%, revenue rises

HCL Technologies on Friday said its consolidated net profit fell 13.6 per cent to Rs 3,442 crore for the quarter ending December. The company said that it stood at Rs 3,969 crore in the same quarter last year.

HCL Technologies on Friday said its consolidated net profit fell 13.6 per cent to Rs 3,442 crore for the quarter ending December.

HCL Q3 Results: IT giant HCL Technologies on Friday said its consolidated net profit fell 13.6 per cent to Rs 3,442 crore for the quarter ending December. The company said that it stood at Rs 3,969 crore in the same quarter last year. The company said its revenue from operations grew 15.7 per cent year-on-year to Rs 22,331 crore as against Rs 19,302 crore in the same quarter last year. Compared to the previous quarter, revenue grew by 8.1 percent and net profit by 5.4 percent.

At the same time, the Ebit margin for the company has been at 19 percent, which has increased by 8.5 percent on a quarterly basis and has fallen by 3.7 percent on a yearly basis. December quarter remains seasonally weak for IT companies. In fixed currency terms, the revenue growth has been 7.6 per cent on a quarterly basis, which is the highest in the last 12 years. HCL Technologies has given all this information in a statement.

Expected growth in revenue for FY22

The company said in the statement that its revenue for the financial year 2022 is expected to grow in double digits in constant currency. At the same time, the EBIT margin is expected to be between 19 per cent and 21 per cent for FY22. The company has declared a dividend of Rs 10 per share for the third quarter, which is the 76th consecutive quarter for dividend pay-out.

The company said that the total contract value (TCV) of its new deal stood at $2,135 million, a growth of 64 per cent year-on-year. Services TVC stood at $1,968 million, an increase of 63 per cent year-on-year. The company has won a total of eight new deals. Products TCV stood at $167 million, which is a 70 per cent year-on-year growth. The company said that its 8 new deal wins have helped in this.

The company added more than 10 thousand new employees

The company’s total cash stood at $2,666 million and net cash at the end of December 31, 2021, at $2,140 million.

C Vijayakumar, chief executive officer and managing director of HCL Technologies, said their future looks promising as they have very strong new bookings of $2.1 billion, an increase of 64 per cent year-on-year. They have added more than 10,000 to their employees this quarter. They are confident that they will be in a better position for the demand momentum. Because their investments on strategic priorities such as digital, cloud and engineering capabilities and plans for their talent development are showing strong returns.

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