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HCL Tech reported its Financial Results of Q3
They see consolidated revenues growing five percent to around Rs 21,500-22,000 crore.

HCL Tech posts fastest revenue growth in 12 yrs, net profit falls

Image: Mint

HCL Technologies Ltd on Friday reported a dollar revenue growth of 7.6% sequentially in constant currency to $2.97 billion for the December quarter. The fastest in almost 12 years, boosted by new deal wins and acceleration in clients’ digital spending.

“We are in the disruption phase of our lives, and the world has been dramatically reshaped and transformed. Technology has become all pervasive, in our homes, and livelihoods, and is the epicentre of our lives. Our HCL family has been a catalyst in this change and is helping global enterprises embrace digital transformation,” company Chairperson Roshni Nadar Malhotra said.

In its earnings report, the company said the 7.6 percent quarterly growth in CC revenue was its highest in 12 years. Its earnings before interest, taxes, depreciation,, and amortization (EBITDA) for the latest quarter grew 8.3% QoQ to Rs 5,242 crore. While its earnings before interest and taxes (EBIT) stood at Rs 4.251 crore, a QoQ increase of 8.5%.

Financial Highlights

Its consolidated revenue during the September-December period stood at Rs 22,331 crore, up 15.7 percent over a year-ago quarter and up by 8.1 percent from the previous quarter.

Consolidated revenue in the corresponding period of last year was Rs 19,302 crore. While in the preceding quarter, it was Rs 20,655 crore.

The company had reported a consolidated profit after tax (PAT) of Rs 3,969 crore in the corresponding quarter last year. In the preceding quarter, PAT stood at Rs 3,259 crore.

December quarter revenue rose 15.7% from the year-ago period to 22,331 crores on the back of strong performance led by its digital business or ‘Mode 2’, which grew 30.2% from a year earlier in constant currency. Analysts estimated quarterly revenue of 21,630 crores.

The company said the total contract value (TCV) of its new deal was at $ 2,135 million registering 64 percent year-on-year growth. Services TCV was at $1,968 million (63 per cent YoY) enabled by eight net new deal wins. Products TCV was at $167 million (70 per cent YoY) enabled by 8 net new large deal wins, the firm said.

The company’s IT and Business services raked in a revenue of Rs 2,103 crore, while Engineering and R&D services earned Rs 473 crore. Products and Platforms accounted for a revenue of Rs 402 crore.

HCL also recorded strong order bookings, with a total contract value (TCV) of new deal wins worth $2.13 billion, a 64% growth from a year earlier.

The company said it expects revenue to grow in the double digits in constant currency in the fourth quarter of the ongoing fiscal, FY22. They said its EBIT margin would be between 19 percent and 21 percent for the rest of the fiscal.

Stock Movement

The HCL stock closed 0.2 percent up at Rs 1,337 at the National Stock Exchange on January 14. It generated returns of 30.1 percent in the past year and 1.4 percent during this financial year. The stock gained 15.4 percent in the past one month.

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