Amidst bearish results from IT giants like Infosys and TCS, HCL Tech, India’s 3rd largest IT company declared its Q4 FY22 results on April 21, 2022.
HCL’s consolidated net profit stood at Rs. 3,599 crore for the March FY22 quarter. Revenue from operations was recorded at Rs. 22,597 crores, rising 15% Y-o-Y. In terms of dollars, revenue for the quarter came at $2,993 million, up nearly 0.5% Q-o-Q and 11% Y-o-Y.
Net income was published at Rs. 3593 crores, up 4.4% Q-o-Q and 24% Y-o-Y. The EBITDA for HCL was Rs. 5,053 crores with a margin of 22.4%.
HCL also declared TCV (total contract value) of new deal wins at $2,260 million for the corresponding quarter, recording 6% Q-o-Q growth.
Segment-wise, HCL displayed robust performance. Services had grown 17% Y-o-Y whereas engineering and R&D services impressed by growing 24% Y-o-Y. This was due to traction in digital engineering and IoT Works. On the other hand, IT and Business Services recorded a growth of 16% Y-o-Y, courtesy of acceleration in cloud transformation, application and data modernisation.
On a trailing 12 months basis, the attrition rate grew to 21.9% for the March quarter. HCL however added 40,000 freshers during the fiscal 2022 year, bringing the total headcount to 208,877.
The company also declared an interim dividend of Rs. 18 per equity share. HCL Tech shares closed 1.18% higher at Rs 1,102.30 per share on expectations of stable Q4 results.
Roshni Nadar Malhotra, Chairperson, HCL Tech stated that clients worldwide viewed HCL Technologies as a partner of choice to drive business outcomes led by edge technology services, solutions and products.
HCL Tech CEO & MD C Vijayakumar added that they have delivered yet another stellar quarter where the revenues were up 5% Q-o-Q & 17.5% Y-o-Y in constant currency. Over the last three quarters, the services business has been consistently growing organically at 5% and higher. Overall growth on a Y-o-Y basis stands at 12.7%. It is better than the guidance led by strong momentum in Digital, Cloud and Engineering services. HCL shall continue to invest proactively to create a larger talent pool to address the demand.
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Research Analyst: Bavadharini KS