HCL Technologies posted a 20 percent increase in its consolidated net profit during the third quarter of FY23 at Rs 4,096 crore compared with Rs 3,442 crore a year ago.
Shiv Nadar founded company saw a 19.61 percent rise in consolidated revenue from operations to Rs 26,700 crore from Rs 22,321 crore in the corresponding quarter last fiscal, the company said in an exchange filing.
Per the poll of brokerages, consolidated revenue was estimated to clock Rs 26,026 crore, up 16.6 percent year-on-year (YoY), while consolidated profit after tax (PAT) was expected to come at a rise of 10.6 percent YoY to Rs 3,796 crore.
Revenue in respect of constant currency rose 5 percent sequentially and 13.1 percent year-on-year (YoY).
The IT company won 17 large deals during the quarter of which seven were in the services segment and the rest in software. The total contract value (TCV) of the new deal wins reckoned at 10 percent YoY increase at $2.35 billion.
Interim Dividend:
The Board of Directors announced an interim dividend of Rs 10 per equity share for FY23. A record date of January 20 has been set. February 1, 2023 will be the payment date.
HCL Technologies said the EBIT margin during Q3FY23 stood at 19.6 percent, up 165 bps on QoQ basis. Net margin was 15.3 percent, up 117 bps sequentially.
“We have delivered a strong performance this quarter across all key metrics – revenue growth, margin expansion, booking growth and people metrics,” said C Vijayakumar, CEO & Managing Director, HCL Technologies. “Our strong revenue growth is led by our services business which grew 15.4 percent YoY. Our margins at 19.6 percent this quarter, increased 60 basis points YoY.”
Outlook:
The company is expecting to log revenue between 13.5-14 percent YoY in constant currency.
Services revenue is anticipated to be at 16-16.5 percent YoY in constant currency, while EBIT margin will likely narrow to 18-18.5 percent.
Attrition Rate:
The last twelve-month attrition rate – the rate at which people leave the company voluntarily – improved to 21.7 percent from 23.8 percent witnessed in the September quarter but higher than 19.8 percent noted last year at the third quarter end.
2,945 new employees joined the tech firm during the quarter, bringing total headcount to 2,22,270. 5,892 freshers joined the company during the quarter.