homeearnings NewsHCL Technologies Q2 profit rises 10% YoY to Rs 3,832 crore, beats estimates; Rs 12 dividend declared
HCL Technologies Q2 profit rises 10% YoY to Rs 3,832 crore, beats estimates; Rs 12 dividend declared
Noida-headquartered HCL Tech has lowered its FY24 revenue growth guidance to 4-5% year-on-year. The company has retained its FY24 EBIT margin guidance at 18-19%. The stock closed 1.78% lower at Rs 1,223.40 apiece on NSE in today's trade.
HCL Technologies on Thursday, October 12, reported a sharp recovery in net profit growth and revenue growth even amid a slowdown in tech spending. The IT services company's consolidated net profit rose 10% year-on-year (YoY) to Rs 3,832 crore for the second quarter (Q2FY24) ended September 30, 2023. HCL Tech had posted a net profit of Rs 3,489 crore in the same period a year ago.
The number was higher than CNBC-TV18's poll, which had pegged the figure at Rs 3,760 crore.
The Noida-headquartered company reported a 8% rise in consolidated revenue for the September quarter to Rs 26,672 crore. It was Rs 24,686 crore in the year-ago period. The revenue numbers were lower than CNBC-TV18's poll of Rs 26,821 crore.
On a sequential basis, the software major's net profit has risen by 8% and the revenue has increased by 1%.
In constant currency terms, revenue was up 1% on a sequential basis and 3.4% year-on-year. In USD terms, the revenue grew $3,225 million, up 0.8% QoQ and 4.6% YoY.
HCL Tech's EBIT, or earnings before interest and tax, a key metric of profitability, came in at Rs 4,919 crore as against CNBC-TV18's poll of Rs 4,707 crore. Ebit margin for the quarter came in at 18.4% for the reported quarter versus our poll of 17.5%.
HCL Tech has lowered its FY24 revenue growth guidance to 4-5% YoY, while it has lowered its FY24 services revenue guidance to 4.5-5.5% YoY. However, the company has retained its FY24 EBIT margin guidance at 18-19%.
Further, the board of directors have approved a dividend of Rs 12 per equity share for financial year 2023-24. The record date for the same has been fixed on October 20, 2023.
The payment date for the said interim dividend will be on October 31, 2023.
"Our revenue growth of 1.0% QoQ and 3.4% YoY on a constant currency basis, with a 154 bps QoQ improvement in operating margin and improving cashflows, reflect our ability to execute well in an evolving business environment and our commitment to operational efficiency," said CMD Vijayakumar.
In Q2, HCL Tech won 16 large deals - 10 in services and 6 in software - across diverse industries such as life sciences, healthcare, public services and others. The value of new deal wins (TCV) was at $3.9 billion in the reporting quarter.
"Our new bookings of US$ 4 Bn this quarter is at an all-time high, driven by a standout mega deal. This achievement underscores our ability to seize exceptional opportunities in the market and gives us optimism for our medium-term growth prospects," Vijayakumar said.
Shares of HCL Technologies closed 1.78% lower at Rs 1,223.40 apiece on the NSE in trade today. The scrip has gained 17.70% since the beginning of this year, as against a 11.82% gain in the Nifty IT index.
First Published: Oct 12, 2023 5:56 PM IST
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