HCL Technologies announced a 4% year-on-year (YoY) growth in consolidated net profit in its Q2 earnings report. It grew from Rs. 3,143 crores to Rs. 3,259 crores YoY. On a sequential (quarter-on-quarter) basis, the net profit grew 1.7% compared. HCL Technologies has also declared an interim dividend of Rs.10/share for the financial year 2021-22.
Revenue from operations also increased 11% YoY to Rs. 20,655 crores in September this year. On a QoQ basis, the growth was recorded at 2.9%. The company has forecasted its revenue to grow in double digits during the course of the remaining year.
The company’s EBITDA margin was reported at Rs. 4,838 crores after the end of Q2 FY22. The consolidated EBIT, however, fell by 0.4% QoQ to Rs. 3,916 crores due to wage hikes to retain talent and cross-currency headwinds. The EBIT margins also reduced by 60 basis points, QoQ, and stood at 19%.
The company hired a record 11,135 employees this quarter, which was its highest number so far. This has increased the total employee count to 1,87,634. Nonetheless, the attrition rate rose from 11.8% in the last quarter to 15.7% this quarter.
HCL Tech’s scrip fell by 1.53% to close at Rs. 1,246 on the NSE ahead of the company’s quarterly results (14 October 2021).
The clients that HCL Tech added to its portfolio were in the following deal brackets –
HCL Technologies’ Chairperson Roshni Nadar said that the lessons learned from the pandemic have sharpened the company’s abilities to adapt and innovate. It has also deepened the company’s commitment to bring a positive change through the use of technology.
Nadar also said that in the coming months the company would further accelerate its actions and investments in emerging technologies, people, and ESG to build up a stronger and better future together.
The CEO of the company, C Vijayakumar stated that the company performed well this quarter driven by a strong growth in its service portfolio which was led by its Digital Business, Engineering and Cloud Services.
During July-September 2021, HCL Technologies secured 14 big deals which aggregated to $2.3 billion, a 38% growth on a YoY basis. These deals are higher than the deals registered by the company’s competitor Infosys.
Some of the major deals which HCL Technologies signed included the following –
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Research Analyst: Bavadharini KS