HCL Tech Q4: IT giant declares interim dividend of ₹18 per share, net profit at ₹3,986 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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IT services company HCL Technologies Ltd on Friday (April 26) reported a flat year-on-year growth in net profit for the fourth quarter that ended March 31, 2024. Its consolidated net profit for the fourth quarter was ₹3,986 crore compared with ₹3,983 crore in FY23.

Sequentially, the net profit declined 8.4% from ₹4,350 crore in the October-December period, according to the company’s filing and statement. CNBC-TV18 poll had predicted a profit of ₹4,084 crore for the quarter under review.

Pre-tax profit (EBIT) of ₹5,018 crore was down 10.6% quarter-on-quarter but up 3.8% as compared to the previous year. The company gave a guidance of 3-5% growth in revenue in constant currency terms for FY25 and an EBIT margin of 18-19%.

EBIT margin (pre-tax profit as a percentage of revenue) declined to 17.6% in the January-March period from 19.8% in the previous quarter and 18.1% a year ago. CNBC-TV18 poll had predicted an EBIT of ₹5,226 crore for the quarter under review. Employee cost rose 11.5% during the quarter while the attrition rate at 12.4% was lower than 19.5% in the fourth quarter of last year.

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For the March quarter, HCLTech’s revenue from operations stood at ₹28,499 crore, a 7.11% rise from ₹26,606 crore last year. For the entire FY24, HCL Tech reported a 5.73% rise in net profit to ₹15,702 crore. CNBC-TV18 poll had predicted revenue of ₹28,548 crore for the quarter under review.

In Q4 of FY24, HCL Technologies reported a rupee revenue of ₹28,499 crore, marking a marginal increase of 0.2% quarter-on-quarter and a 7.1% growth year-on-year.

Constant currency (CC) revenue, a crucial indicator accounting for currency fluctuations, exhibited a quarter-on-quarter uptick of 0.3% and a year-on-year rise of 6%. Similarly, USD revenue amounted to $3,430 million, reflecting a quarter-on-quarter increase of 0.4% and a year-on-year increase of 6.0%.

The services segment CC revenue climbed 3% quarter-on-quarter and 6.7% year-on-year. This growth was predominantly propelled by advancements in telecommunications, media, publishing, and entertainment verticals, which witnessed a remarkable quarter-on-quarter surge of 21.6% and a year-on-year expansion of 39.2%.

Additionally, digital services emerged as a key driver of revenue growth, contributing 37.1% to the overall services revenue and posting a commendable year-on-year growth rate of 6.3%. HCLSoftware reported an annual recurring revenue (ARR) of $1.02 billion, marking a year-on-year CC increase of 0.7%.

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The quarter witnessed significant traction in new deal wins, with total contract value (TCV) amounting to $2,290 million. Notably, HCL Technologies secured 21 new large deals, comprising 13 in services and eight in software.

In terms of workforce dynamics, HCL Technologies maintained a total people count of 227,481, with a net addition of 2,725 employees during the quarter. The company onboarded 3,096 freshers. There was a notable decline in the last twelve months’ (LTM) attrition rate, which stood at 12.4%.

The company’s board of directors has declared an interim dividend of ₹18 per equity share of ₹2 for the financial year 2024-25. The record date of May 7, 2024, fixed for the payment of the aforesaid interim dividend has been confirmed by the board of directors. The payment date of the interim dividend is slated to be May 15, 2024.

The results came after the close of the market hours. Shares of HCL Technologies ended at ₹1,476.80, down by ₹26.85, or 1.79%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow