The consolidated net profit for HCL Technologies’ fourth quarter, which ended in March, decreased by 8.4% to Rs 3,986 crore on Friday. This was a significant decrease from the street predictions of Rs 4,123 crore.
For the quarter that ended in December, the nation’s third-largest provider of IT services reported a net profit of Rs 4,350 crore.
The net profit of the corporation remained constant from year to year. It had made Rs 3,983 crore in profit the previous year.
CEO & MD C Vijayakumar stated in a post-earnings call that the company forecasts revenue growth (on a constant currency basis) of roughly 3-5% for FY25, with services revenue rising by 3-5% & Ebit margin of 18-19% on a y-o-y basis.
The board of HCLTech also announced an interim dividend for FY25 of Rs 18 per share.
“Despite geopolitical and global economic obstacles, HCLTech continues to grow thanks to a differentiated portfolio. As we expand our community projects outside of India, we are more focused than ever on conducting business responsibly and sustainably,” chairperson Roshni Nadar Malhotra stated.
In comparison to the previous quarter, HCLTech’s revenue remained unchanged at Rs 28,499 crore, although it increased 7.1% year over year from Rs 26,606 crore recorded in the same period previous year. Its Ebitda decreased to Rs 6,117 crore, or around 10%.
The IT major’s EBITDA and revenue both failed to meet street estimates. Analysts at Bloomberg predicted in their consensus estimate that the company will report revenue of Rs 28,557 crore and EBITda of Rs 6,364 crore.
Also read HCLTech Related News – HCLTech and ServiceNow partner to offer GenAI-driven solutions
The company’s vertical for technology and services saw a 1.1% quarterly decline and an 8.7% year-over-year decline. Its public services, which comprise transportation, energy and utilities, travel, and logistics, decreased 6.3% on a quarter-over-quarter basis and 7% on an annual basis.
“HCLTech’s strong commitment to our clients and people has allowed us to lead the industry in FY24 with good dollar revenue growth of 5.4% y-o-y during difficult times.” More significantly, with our operating cash flow up 21.6% year over year to $2,711 million and free cash flow up 27.7% year over year to $2,584 million, we have translated this increase into even higher value creation for our shareholders, Vijayakumar continued.
“Despite Q4 profits falling short of projections, the company has a robust business pipeline and a bright future ahead of it. Reduced expenditure and lengthier client decision-making cycles are the causes of deal signing delays, according to Gartner senior principal analyst Biswajit Maity.
As of the March quarter, HCLTech had 227,481 total employees, including 3,096 fresh hires and a net addition of 2,725 workers. Its attrition rate decreased to 12.4% from 19.5% during the same time last year.
It’s crucial to remember that certain customer feedback points to discontent with the caliber of services provided by HCLTech; in order to keep things moving forward, they must keep an eye on and respond to these issues. Regarding personnel, HCLTech has handled attrition issues quite skillfully, but other providers are presently having difficulty with it, according to Maity.
Deal prevails.
In Q4, HCLTech secured 21 new, sizable contracts, totaling $2,290 million in contract value (eight in software and thirteen in services). In FY24, the company’s new contract wins increased by 10% to $9,759 million, with 73 new significant deals (of which 36 were in services and 37 in software).
Also Read | Tata Consumer ventures into vending, reaches 1,000 machines
