HCL Tech posts 19% rise in net profit at Rs 4,096 cr for Q3 of FY23
HCL Tech on Thursday posted a strong third quarter performance beating street estimates as the company reported a strong revenue growth and robust deal pipeline.
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Bengaluru, 12 January HCL Tech on Thursday posted a strong third quarter performance beating street estimates as the company reported a strong revenue growth and robust deal pipeline.
During the third quarter ended December, HCL Tech posted 19 per cent rise in consolidated net profit at Rs 4,096 crore as compared to Rs 3,442 crore in the same quarter last year.
Revenue from operations rose 19.5 per cent to Rs 26,700 crore as against Rs 22,331 crore in the year-ago period. In constant currency term, revenue was at $3.24 billion, which was a rise of 5 per cent over the last quarter. HCL Tech's sequential growth was higher than both its large peers Tata Consultancy Services (TCS) and Infosys for this period.
The company won 17 large deals during the quarter out of which seven was in the services segment and 10 were in software. The total contract value (TCV) of new deal wins was at $2.35 billion for HCL Tech, a rise of 10 per cent over the same period last year.
"We have delivered a strong performance this quarter across all key metrics – revenue growth, margin expansion, booking growth and people metrics," C Vijayakumar, CEO & Managing Director, HCL Tech said. "Our strong revenue growth is led by our services business which grew 15.4 percent YoY in constant currency term," he added.
Operating margin of the Noida-headquartered firm rose 165 basis points sequentially 19.6 per cent.
HCL Tech guided for a revenue growth of 13.5 to 14 per cent in constant currency for FY23. Services revenue is expected to be between 16-16.5 per cent YoY for this period. It, however, narrowed its margin guidance to 18-18.5 per cent for the ongoing financial year.
Among geographies, the Americas saw a subdued revenue growth of 0.5 per cent, while Europe grew by 7.2 per cent in sequential term in the December quarter. Among verticals, life sciences posted a sequential rise of 5.5 per cent and manufacturing saw a growth of 4.9 per cent. However, growth in financial services fell by 1.7 per cent, while it also declined for retail vertical by 0.6 per cent.
During the quarter, HCL Tech's attrition inched lower to 21.7 per cent, a fall of 210 basis points over the last quarter. The company overall added 2,945 employees during the quarter, taking the total headcount to 2,22,270. It also added 5,892 freshers during the third quarter.
The company declared an interim dividend of Rs 10 per share for FY23.
