HCL Tech Q1 Results: Steady Earnings Growth at Rs 3,283 crore; revenues jump 17%

NEW DELHI: On Tuesday reported a 2.4% year-on-year increase in consolidated net profit to Rs 3,283 crore in the June quarter from Rs 3,205 crore in the same quarter the last year.

Revenue for the quarter rose 16.92% year-on-year to Rs 23,464 crore from Rs 20,068 crore in the same quarter last year.

In line with Street’s expectations, the company kept its FY23 constant-currency revenue guidance within the 12-14% range. The Ebit margin forecast also remained unchanged at 18-20%.

Ebit margin for the quarter was 17%, compared to 18% in the March quarter and 19.6% in the prior year quarter.

Ebitda margin was 21.2% compared to 22.4% in March and 25.2% in the June quarter of last year.

The IT major said new contracts won were $2,054 million for the quarter, up 23.4% year-on-year. Of this amount, Services’ total contract value (TCV) was $1,950 million, with seven net contracts completed. TCV revenue was $104 million, including nine net won contracts.

“Our new bookings were up 23.4% year-over-year, supported by a good mix of large and mid-size deals, and our pipeline remains near record highs. Our operating margin was 17%. We have put in place the right measures. this will improve our profitability in the future”, C Vijayakumar, CEO and Managing Director of HCL Technologies.

The highlight of the quarter, said Chief Financial Officer Prateek Aggarwal, was a 19% year-over-year growth in services in terms of CC. Product and platform growth was 1.4% in terms of CC, he said.

This excluded discontinued operations. “Our cash generation continues to be robust with operating cash flow of $2,013 million and free cash flow (FCF) of $1,762 million, on a trailing twelve month basis, with OCF / NI at 112%,” Aggarwal said. The company’s board of directors has approved a dividend of Rs 10 per share in line with its capital allocation policy.