HCL Technologies Q4: IT Major's Profit Surges 11% To Rs 3,983 Crore

HCL's revenue from operations rose by about 18 per cent to Rs 26,606 crore during the reported quarter from Rs 22,597 crore in the March 2022 quarter.

In the quarter, the company hired 4,480 new workers, while the net addition was 3,674.

Source : Getty

HCL Technologies reported a 10.85 per cent jump in its consolidated net profit to Rs 3,983 crore in the fourth quarter of the financial year ending March 2023 against a net profit of Rs 3,599 crore in the same period a year ago.

However, the IT major's profit declined by three per cent on quarter-on-quarter basis. In Q3 of the financial year 2023, HCL reported its highest-ever profit in any quarter at Rs 4,096 crore. 

The IT major's revenue from operations rose by about 18 per cent to Rs 26,606 crore during the reported quarter from Rs 22,597 crore in the March 2022 quarter. 

According to Money Control, HCL's Q4 results have defied analysts' estimates but revenue lagged the projections.

The company has also announced an interim dividend of Rs 18 per share. Ahead of the results, the company's shares closed at Rs 1,037 apiece on NSE.

The company has projected a the revenue growth guidance for FY24 at 6-8 per cent. The EBIT margin in FY24 is expected to be between 18 and 19 per cent. 

In the March 2023 quarter, the company hired 4,480 new workers, while the net addition was 3,674. HCL hired 26,734 freshers during the year 2022-2023 period. Layoffs resulted in a net addition of 17,067. At 2,25,944, the overall workforce was up 8.2 per cent.

“Our pipeline is near all-time high, which reflects our differentiated business mix and strong client demand for our offerings. We have added 3,674 employees this quarter and overall employee strength has now grown beyond 225000. All these set us well in FY24 for a healthy revenue growth in 6-8 per cent range with operating margins in 18-19 per cent range,” said C Vijay Kumar, CEO & MD, HCLTech.

In the last twelve months (LTM), attrition rate came down to 19.5 per cent as jobs in the IT industry have dried up. It was 21.7 per cent in the previous quarter.