HCL Tech posts 2.4% rise in net profit at Rs. 3,283 cr in Q1 of FY23
HCL Technologies on Tuesday posted a consolidated net profit of Rs 3,283 crore in the first quarter of current financial year, up 2.4 per cent over the same period of last fiscal. Total income of the IT major was at Rs 23,464 crore, which was 16.9 per cent higher than a year ago period. In dollar term, revenue in Q1 was at $3.02 billion. Revenue growth was up 2.7 per cent sequentially.
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Bengaluru: HCL Technologies on Tuesday posted a consolidated net profit of Rs 3,283 crore in the first quarter of current financial year, up 2.4 per cent over the same period of last fiscal. Total income of the IT major was at Rs 23,464 crore, which was 16.9 per cent higher than a year ago period. In dollar term, revenue in Q1 was at $3.02 billion. Revenue growth was up 2.7 per cent sequentially.
"We have started FY23 on a strong note with an overall growth of 2.7 per cent QoQ and 15.6 per cent YoY in constant currency. Our services business continues to have robust growth momentum, growing at 2.3 per cent QoQ and 19.0 per cent YoY in constant currency, driven by our digital engineering and digital application services with cloud adoption being a horizontal theme across all services and verticals", said C Vijayakumar, CEO & MD of HCL Technologies.
"Our new bookings grew 23.4 per cent YoY supported by a good mix of large and mid-sized deals and our pipeline remains near record high. Our operating margin came in at 17.0 per cent. We have put in place the right measures that will improve our profitability going forward," he added.
In the first quarter ended March 2022, TCV was at $2.05 billion, registering 23.4 per cent growth over the same period of last fiscal. Out of the total deal wins, services segment contributed $1.95 billion with seven net new large services deal wins. Products TCV was at $104 million with nine net new large product deal wins.
Operating margin of the company was at 17 per cent for the first quarter, a fall of 410 basis points over preceding quarter. "The key highlight of the quarter is the stellar growth in services at 19 per cent YoY in constant currency term. Products & Platforms was 1.4 per cent up YoY in CC, excluding the divested/discontinued business," said Prateek Aggarwal, Chief Financial Officer of HCL Technologies.
During this period, attrition increased to 23.8 per cent as compared to 21.9 per cent reported in the preceding quarter. As of June 30, 2022, the total global employee headcount was 210,966. Net hiring was 2,089 for the quarter.
The Noida-headquartered IT major retained its revenue and margin guidance for the current financial year. The company hopes to grow its revenue by 12-14 per cent in constant currency term, while operating margin is expected to be 18-20 per cent in FY23.
