HCL Technologies Q1 Net Profit Rises 7.6% To Rs 3,534 Crore

IT services firm HCL Technologies on Wednesday reported a 7.6 per cent year-on-year rise in its June quarter net profit on the back of new order wins.
     
Its consolidated net profit at Rs 3,534 crore in April-June period was up from Rs 3,283 crore, in the same period a year back, according to a stock exchange filing.
     
On a quarter-on-quarter basis, the net profit fell 11 per cent when compared to Rs 3,983 crore earnings in January-March period.
     
The company's revenue at Rs 26,296 crore was down 1.2 per cent quarter-on-quarter but up 12.1 per cent year-on-year.
     
On a constant currency, revenue was down 1.3 per cent quarter-on-quarter but up 6.3 per cent year-on-year.
     
HCL said it won 18 large deals, 7 in services and 11 in software, during the June quarter.
     
The firm projected a revenue growth of 6-8 per cent in constant currency terms and an EBIT (Earnings Before Interest and Taxes) margin of 18-19 per cent.
     
The company's board of directors have declared an interim dividend of Rs 10 per equity share of Rs 2 each of the company for the financial year 2023-24.
     
The company's CEO C Vijayakumar said the order pipeline continues to grow even as he added that the current quarter was a soft one.
        
"Though we did expect this to be a soft quarter our performance was lower than our own expectations," he said during the June quarter earnings conference.
     
He said that the bookings this quarter were at USD 1.6 billion as against over USD 2 billion for the last seven quarters.
     
EBITDA margins for the quarter stood at 16.9 per cent compared to 18.25 per cent in the previous quarter.
     
Vijayakumar said the company is optimistic about pipeline conversion and its translation into revenue that will help meet the full-year guidance.
     
While acknowledging that there is softness in verticals such as tech and telecom driven by reduction in discretionary spends and associated ramp downs, Vijayakumar said he expected them to pick up shortly.
     
On Wednesday, larger rival TCS reported a 16.83 per cent jump in its June quarter consolidated net profit to Rs 11,074 crore.
     
The Tata Group company had reported a net profit of Rs 9,478 crore in the year-ago period and Rs 11,392 crore in the preceding quarter. Its revenue from operations increased 12.55 per cent on a year-on-year basis to Rs 59,381 crore and was marginally up from the preceding March quarter's Rs 59,162 crore.