HCL Tech Q3 Results: Company Clocks 20% Rise In Net Profit, Announces Rs 10 Dividend

The consolidated revenue of HCL from operations was up 19.6 per cent in Q3FY23, as compared to quarter ended December 2021

Attrition rate at HCL Tech in Q3FY23 stood at 21.7 per cent.

Source : Getty

HCL Technologies on Thursday reported a 20 per cent rise in its consolidated net profit for the quarter ended December 2022 (Q3) to Rs 4,096 crore as against Rs 3,442 crore a year ago.

The consolidated revenue of HCL from operations was up 19.6 per cent in Q3FY23, as compared to quarter ended December 2021 (Q3FY22), according to the data released by the company revealed.

The company recorded a revenue of Rs 26,700 crore in the quarter. On sequential basis, the revenue was up 8.2 per cent. 

The Board of Directors has also declared an interim dividend of Rs 10 per equity share for the FY23. The record date is set as January 20. The Payment date shall be February 1.

The EBIT saw a growth of 22.8 per cent YoY and profit after tax (PAT) was up 19 per cent. The EBIT margin guidance narrowed to 18.0 per cent to 18.5 per cent.

C Vijayakumar, CEO and MD, HCL Tech, said, “We have delivered a strong performance this quarter 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 CC; and strong revenue growth of 5.0 per cent QoQ CC is led by HCL Software. Our margins at 19.6 per cent this quarter, increased 60 basis points YoY.”

Prateek Aggarwal, chief financial officer, HCL Tech, said, "We are enthused with the overall well-rounded Q3 performance. Revenue at Rs 26,700 crores is up 19.6 per cent YoY, on the back of strong Services business growth of 22 per cent YoY. During the quarter, we crossed important milestones of Rs 5,000 crores and Rs 4,000 crores for EBIT and PAT respectively for the very first time. Profitability was at all-time high with EBIT at Rs 5,228 crores (up 22.8 per cent YoY) and PAT at Rs 4,096 crores (up 19 per cent YoY). ROIC stands at solid 30 per cent and 37 per cent for the Company and Services business, respectively.”

During the quarter, the IT firm bagged 17 large deals, seven were in the services sector and 10 in the software business. The company added 2,945 new employees during the quarter, and the closing headcount was 222,270. The attrition rate in Q3FY23 stood at 21.7 per cent.

The shares of HCL Tech closed at Rs 1,071.90 apiece, up 1.62 per cent on the BSE on Thursday.