HCL Technologies (HCL Tech) announced a 10.80% year-over-year (YoY) increase in net profit for the March quarter, coming in at Rs 3,983 crore vs Rs 3,593 crore in the same period last year. The C Vijayakumar-led business reported net revenues of Rs 26,060 crore, up 17.70% year over year. This compares to the revenues of Rs 22,597 crore it posted during the same period the previous year.
CC, increase in dollar revenue
The Noida-based IT giant's dollar sales were $3,235 million, down 0.3% sequentially but up 8.1% year over year. Revenue decreased 1.2% QoQ (increased 10.5% YoY) in constant currency (CC) terms. The EBIT margin for the quarter was 18.1% compared to 19.6% in December and 17.9% in the same period last year.
Order prevails
HCL Tech closed 13 major agreements during the period. However, the total contract value (new deals closed) for the quarter decreased 8% YoY to $2,074 million. According to CEO Vijayakymar, "Our pipeline is close to an all-time high, which reflects our differentiated business mix and strong client demand for our offerings."
3.674 new employees were hired by the firm during the quarter. At the conclusion of the quarter, there were 2,25,944 people employed. 19.5 percent of the workforce was lost throughout the quarter.
FY24 forecast
The Noida-based software and consultancy company has predicted a revenue increase of 6–8% and an operating margin in the 18–19% range for FY24. Analysts anticipated that HCL Tech will guide yearly revenue growth of 5-7% in CC terms for FY24E. On the margin front, they anticipated the EBIT margin for FY24E to be in the 18–19% area.
Dividend
The IT giant declared an 18 rupee dividend per share, marking its 81st consecutive quarter of dividend payments. According to HCL Tech, the record date for the dividend is set as April 28 and the payout date is May 9. As a result, the total dividend declared by HCL Tech for FY23 was Rs 48 per share or 87.50% of its earnings per share.
According to HCL Tech, their services revenue increased 10.6% CC (0.6%) quarter over quarter. Revenue at HCLSoftware increased 8.2% YoY. It claimed that 37.5 percent of HCL Tech Services' income came from digital sources. According to HCL Tech, its free cash flow was $886 million while its operating cash flow was $924 million.
Revenue breakdown by regions and verticals
Prior to the release of its quarterly results, Trendlyne's average price objective for HCL Technologies at Rs. 1,177 indicated a possible upside of 13%. The stock decreased 0.04 percent as of Thursday's closing price of Rs 1,037.55.
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