IT services player HCL Technologies reported satisfactory numbers in Q1 FY22 aided by a slew of new deals in the cloud and business transformation services segments. The company also reported renewed demand for its major areas of engagement that include software services, business process outsourcing and tech-infrastructure services.
HCL Technologies reported a 9.4% rise in consolidated net profit to Rs 3,213 crore in the June quarter. A year ago, the IT firm had reported a net profit of Rs 2,935 crore. On a quarterly basis, profit rose 8.5%.
Overall revenue from operations was reported at Rs 20,068 crore which is up from the corresponding quarter in the previous year where the revenue from operations was reported at Rs 17,842 crore. This is however only a 2.2% rise quarter-on-quarter.
The board of the company sanctioned an interim dividend of Rs 6 per share.
HCL Technologies stock closed 0.48% down at Rs 1,000.20 on Monday, July 19, 2021.
HCL Technologies CEO C Vijayakumar said that the company remains confident of a good q-o-q growth ahead for the remaining financial year which will be supported by the 37% year-on-year growth in booking and hiring of 7,500+ personnel that this quarter has witnessed.
Shiv Nadar, Chief Strategy Officer also said, “The experiences of the pandemic will foster greater adaptability and a spirit of innovation.”
While the aftermath of the pandemic is visible on the results of HCL Tech’s peers too, the Q1 earnings for HCL Tech have come in at comfortable levels. The company expects to grow its business and foresees further demand for its services in the remainder of the year that is likely to lift up its financials.
The recent softness in the performance of the stock has made the valuation enticing, according to analysts. In the context of medium to long term growth perspective, the valuation is at a discount to the other peers in the same sector.