HCL Tech Q3 net profit rises 19 pc to Rs 4,096 crore
IT company HCL Tech on Thursday reported a 19 per cent increase in the consolidated net income to Rs 4,096 crore for the third quarter ended December 31, 2022 driven by growth in services revenue.
It had posted a net income of Rs 3,442 crore a year ago, the company said. The company has for the first time crossed Rs 5,000 crore of net income before interest and taxes and Rs 4,000 crore of profit after tax in a quarter.
The consolidated revenue grew by 19.56 per cent to Rs 26,700 crore during the reported quarter from Rs 22,331 crore in the December 2021 quarter.
“The strong revenue growth is attributed to both the momentum in our services business as well as our software business,” HCL Tech CEO and Managing Director C Vijayakumar said.
HCL Tech narrowed current fiscal growth guidance in the range of 13.5-14 per cent for the overall revenue in constant currency terms and margin to 18-18.5 per cent.
“At a company level we are at 30 per cent return on invested capital. In the service business that number is 37 per cent. We have narrowed down the guidance,” HCL Tech Chief Financial Officer Prateek Aggarwal said.
The company had increased guidance in the last quarter from 12 to 14 per cent to 13.5-14.5 per cent.
“Lot of things changed in October-November when all the tech majors came out with their result. That was the reason, when we did our US investor, we did talk about being at the lower end of the guidance range,” Aggarwal said.
HCL Tech expects growth in service revenue to be between 16 -16.5 per cent.
The companys total headcount at the end of the reported quarter stood at 2,22,270, with a net addition of 2,945 employees.
HCL Tech Chief People Officer Ramachandran Sundararajan said the attrition rate dropped significantly during the reported quarter and expect the trend to continue.
The company won 17 large deals during the December 2022 quarter, including 7 in services and 10 in the software segment.
New deal wins total contract value during the quarter increased by 10 per cent year-on-year to USD 2,347 million.
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