HCL Tech Q4 net triples to ₹3,593 crore


HCL Technologies on Thursday reported fourth-quarter net profit of ₹3,593 crore, a more than threefold jump from a year earlier.Net profit during the January-March 2021 quarter was ₹1,102 crore

The company said it expected the revenue to grow in the range of 12%-14% in the current fiscal on ‘strong momentum’ across verticals.

The company reported a net profit of ₹1,102 crore during the January-March 2021 quarter.

Revenue rose 15% to ₹22,597 crore.

For full-year FY22, HCL said net profit grew 4.3% to ₹13,499 crore and revenues climbed 13.6% to ₹85,651 crore. It elaborated that for comparison purposes, net profit of Q4 and full-year FY21 excluded the impact of one-time bonus paid to employees.

“We have delivered yet another stellar quarter in our services business, where the revenue is up 5% QoQ and up 17.5% YoY in constant currency,” C. Vijayakumar, Chief Executive Officer & Managing Director, HCL Technologies Ltd., said. “Over the last three quarters, our services business has been consistently growing organically at 5% and higher, delivering one of the highest CAGR in the industry.”

He added that the overall growth on YoY basis stands at 12.7% which is better than the guidance led by strong momentum in Digital, Cloud and Engineering services. “We continue to invest proactively to create a larger talent pool to address the demand,” Mr. Vijayakumar added.

HCL Technology expects revenue to grow between 12% to 14% in constant currency in FY 23, and EBIT margin is expected to be between 18% to 20% “based on pretty strong momentum that the company has seen over the past three quarters”.

Mr. Vijayakumar noted that the company gave guidance till last year when the guidance was more directional, but given all the uncertainties around, the company wanted to make things easier for investors and give a more precise guidance this year. “Demand environment continues to be quite robust… we feel pretty confident and that has enabled us to provide guidance for the coming year.”

The company’s board also announced a dividend of ₹18 per share for the quarter, taking the payout for the year to ₹44 per share for the year.

The company said it saw strong client addition across all categories. “On YoY basis, USD 100 mn+ clients up by 1, USD 50 mn+ clients up by 8, USD 20 mn+ clients up by 22, USD 10 mn+ clients up by 30, and USD 5 mn+ clients up by 31, USD 1 mn+ clients up by 73,” it said.

Total headcount at the end of March 2022, stood at 2,08,877 employees with a net addition of 39,900 people during the year, up by 23.6% YoY and net additions of 11,000 during the January-March 2022 quarter.

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