HCL Tech Q1 net profit rises 10% to Rs3,214 crore, revenues at Rs20,068 crore

IT services major HCL Technologies has reported a 9.9 per cent year-on-year increase in its consolidated net profit, at Rs3,214 crore, for fiscal first quarter ended 30 June 2021. Quarterly profit is up 8.5 per cent sequentially (quarter-on-quarter) as well.

Revenue for the April-June 2021-22 quarter stood at Rs20,068 crore, showing an year-on-year growth of 12.5 per cent and a growth of 2.2 per cent over the previous quarter.
EBITDA margin was 24.5 per cent while EBIT margin stood at 19.6 per cent for the quarter.
Revenue in dollar terms stood at $2,720 million, up 15.5 percent YoY and 0.9 per cent QoQ. Net income stood at $436 mn, up 12.8 percent YoY and 6.4 percent QoQ.
Segment-wise, IT and business services grew 13 per cent YoY while engineering and R&D services grew 10.7 per cent and products and platforms revenue increased 6 per cent.
The company's total headcount stood at 1,76,499 with a net addition of 7,522 during the quarter.
Q1 TCV of new deal wins stood at $1,664 million, showing a 37 per cent YoY growth, on the back of eight large services deals and four significant product wins, HCL Tech said.
The company also declared a dividend of Rs6 per share.
“Resilience, responsiveness and reinvention – these themes have indelibly marked the months gone by. In a world still battling the aftermath of the pandemic and witnessing second or third waves, the agility and responsiveness of people and businesses have been a beacon of hope. As we look ahead with optimism, I believe that the experiences of the pandemic will foster greater adaptability and a spirit of innovation, said Shiv Nadar, chief strategy officer, HCL Technologies Ltd. 
“At HCL, we believe in purpose-driven growth, unifying social responsibility with our business goals. We have a strong and continued commitment to integrate sustainability and ESG priorities into our business as they are the key drivers for delivering strong value and building lasting and productive relationships with clients, employees and stakeholders,” he added.
HCL Tech expects revenue to grow in double digits in constant currency for FY22. EBIT margin is expected to be between 19 per cent and 21 per cent for FY22, the company said.
"We posted 11.7 per cent YoY revenue growth in constant currency and 29 per cent YoY growth in Mode 2 services in constant currency headlined by Cloud and Digital transformation deals. We remain very confident of good QoQ growth for the rest of this year, enabled by 37 per cent YoY growth in bookings and 7,500+ net hiring this quarter," said C Vijayakumar, chief executive officer, HCL Technologies.
"Our OCF & FCF yields remain amongst the highest among peers at 6.2 per cent and 5.5 per cent, respectively. During the quarter, we paid out Rs4,341 crore ($588m) of dividend, post which our net cash was at $2,053 m at the end of the quarter," said Prateek Aggarwal, CFO, HCL Technologies.