HCLTech Q3 net profit beats estimates to rise 6%, interim dividend declared

IT services company HCLTechnologies Ltd on Friday (January 12) reported a 6% year-on-year (YoY) rise in net profit at ₹4,350 crore for the third quarter that ended December 31, 2023. CNBC-TV18 poll had predicted a profit of ₹3,764.8 crore for the quarter under review.

The consolidated revenue of HCL Tech grew 6.5% to ₹28,446 crore during the reported quarter, from ₹26,700 crore in the December 2022 quarter. CNBC-TV18 poll had predicted revenue of ₹27,892 crore for the quarter under review.

In the third quarter, HCLTechnologies reported a robust performance with its revenue reaching ₹28,446 crore in rupee terms, marking a 6.7% increase quarter-on-quarter and a 6.5% rise year-on-year.

In dollar terms, the company's revenue reached $3,415 million, reflecting a 5.9% growth quarter-on-quarter and a 5.3% surge year-on-year. The constant currency revenue growth for Q3 stood at 6% quarter-on-quarter and 4.3% year-on-year.

During this quarter, the services revenue exhibited substantial growth, increasing by 3.1% quarter-on-quarter and 4.2% year-on-year. The growth was primarily driven by the telecommunications, media, publishing, and entertainment sectors.

Notably, the services revenue surpassed an annual run rate of $12 billion (₹1,00,000 crore), underscoring the company's sustained momentum and strong market presence.

The company reported a Total Contract Value (TCV) of $1,927 million in new deal wins. Among these wins, HCLTech clinched 18 large deals, with 6 in services and 12 in software.

HCLTechnologies anticipates a robust performance with a year-on-year CC Revenue growth, including the recently acquired ASAP, ranging between 5.0% and 5.5%. Additionally, the Earnings Before Interest and Taxes (EBIT) margin is expected to fall within the range of 18.0% and 19.0%.

HCLTech's total workforce now stands at 224,756 employees, with a net addition of 3,617 during the quarter. The company welcomed 3,818 freshers. The Last Twelve Months (LTM) attrition rate stands at a commendable 12.8%, showcasing a significant improvement from the 21.7% reported in the third quarter of the previous year.

The board of directors declared an interim dividend of ₹12 per equity share of ₹2 each of the company for the financial year 2023-24. The record date of January 20, 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 will be January 31, 2024, the company said.

The results came after the close of the market hours. Shares of HCLTechnologies Ltd ended at ₹1,543.00, up by ₹57.25, or 3.85%, on the BSE.