HCL Technologies on Wednesday reported a 7.6 per cent growth in net profit in the first quarter of the fiscal year 2023-24, which ended on June 30, 2023, compared to the same period last year. However, compared to the previous quarter, net profit declined by 11.2 per cent. According to a MoneyControl report, it was mainly due to reduced business in certain deals and verticals such as Hi-tech and telecom.
HCL Tech's net profit for Q1 of FY24 stood at Rs 3,534 crore. Its consolidated revenue for the quarter grew by 12 per cent to Rs 26,296 crore, compared to Rs 23,464 crore in Q1 of FY23.
In terms of constant currency (CC), which accounts for exchange rate fluctuations, revenue declined by 1.3 per cent compared to the previous quarter. In the last quarter, HCL Technologies revised its year-on-year revenue growth guidance in CC terms for FY24 to 6-8 per cent, down from 12-14 per cent in FY22-23.
EBIT margins or operating margins stood at 16.9 per cent in the quarter under review, missing FY24 guidance of 18-19 per cent, as per the company releases.
HCL Tech also reported that it received 18 large deals in the first quarter, with total deal wins worth $1.6 billion. The deal pipeline remained at an all-time high, growing 18 per cent compared to last quarter and 26 per cent compared to the same quarter last year.
As of the end of June, HCL Technologies had a total headcount of 2,23,438 employees, showing a sequential decrease of 2,506. However, during the quarter, the company added 1,597 freshers to its workforce.
On July 12, the shares of HCL Technologies closed at Rs 1,106.50 apiece on the BSE, registering a decrease of 0.74 per cent compared to the previous trading day.