HCL Tech's Q2 net up 4% to Rs. 3,265cr
Software major expects double-digit growth in its revenues for this fiscal; Signed 14 large new deals in Q2 taking its net new booking to $2.3 bn
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Bengaluru: IT services company HCL Technologies reported 3.9 per cent growth in its consolidated net profit at Rs3,265 crore for the September quarter as compared to last year. Net profit grew 1.6 per cent on sequential basis. Revenues of the IT major were at Rs20,655 crore, a rise of 11.1 per cent over last year and 2.9 per cent over the last quarter.
Revenues were at $2.79 billion for the second quarter, which was 3.5 per cent higher over the last quarter and 10.5 per cent over the same period of last year in constant currency term.
The company said it expects double digit growth in its revenues for this fiscal year in constant currency terms. Similarly, its operating margin would be in the range of 19 to 21 per cent for FY22.
"We have delivered a healthy performance this quarter marked by strong growth across our services portfolio led by our digital business, engineering and cloud services. We had impressive client additions across all categories, reflecting strong demand and relevance of our offerings across all our client groups. Our robust pipeline and continued strong employee ramp up augurs well for our business momentum going forward,"said C Vijayakumar, Chief Executive Officer & Managing Director of HCL Technologies.
The company signed 14 large new deals during the second quarter which pushed its net new booking to $2.3 billion, a growth of 38 per cent over last year. HCL Technologies witnessed a healthy addition of new clients with its $100 million clients rising by one and $50 million clients increasing by 12 in number during September quarter.
During the second quarter, while its lifesciences &healthcare vertical grew 20.1 per cent, telecommunciations, media, entertainment and publishing witnessed a growth of 13.4 per cent over the last year in constant currency term.
Operating margin of the company was at 23.4 per cent, a fall of 180 basis points in sequential term. "Services revenue grew strongly at 5.2 per centQoQ in constant currency, with stable EBIT. P&P (product and platform) growth was impacted due to delays in closure of certain deals. Client mining has been healthy across all categories, notably, the number of $50 Mn clients now stand at 41," Prateek Aggarwal, Chief Financial Officer at HCL Technologies. The company added 11,135 on net basis during the second quarter to take its headcount to 187,634 by end of September.
