HCL Technologies, one of the top IT players in India, declared its financial results after market hours on 12th July 2022.
The tech giant reported consolidated revenue from operations for Q1 FY23 at Rs. 23,464 crore, showing a 16.92% YoY (year on year) growth and a 3.84% QoQ (quarter on quarter) growth. The revenue growth (in constant currency terms) is a 15.6% YoY increase and a 2.7% QoQ increase over previous terms.
The Profit After Tax (PAT) for the quarter came in at Rs. 3281 crore, showing a 2.12% YoY increase. However, on a quarterly basis, the PAT seems to have declined by 8.84% against Q4 FY22. This can be partially attributed to the tax expense the company had to endure during the quarter of Rs 1,056 crore, against Rs 721 crore in the previous quarter.
The EBITDA for HCL in Q1 FY23 was at Rs. 4975 crore, a decline of 1.7% YoY and 1.5% QoQ.
With a strong booking performance in the quarter, HCL Technologies declared new deal wins with a total contract value of $2,054 million, registering a growth of 23.4% YoY. Of this, there were 7 net new deals in the services sector and 9 net new deals in the products sector.
Looking at the sector-wise performance during the first quarter of this financial year, the growth momentum was led by the technology and services sector, followed by the telecom, media, publishing, and entertainment sector.
The attrition rate, which has always been a pain point for the industry, continued to plague HCL Technologies, increasing to 23.8% from 21.9% reported in the same quarter of last year.
The company declared a dividend of Rs. 10 per share. The basic earnings per share stood at Rs. 12.13 for the quarter.
The management has provided guidance on revenue, which is expected to grow 12-14% in constant currency terms in FY23. And EBIT margin is expected to be between 18% and 20% in FY23.
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Research Analyst: Bavadharini KS