HCL Technologies Q4 FY 2023 Results: Consolidated Net Profit Up by 10.61%, Revenue Grows by 17.74% YoY

After weak numbers from Infosys and TCS, HCL Technologies, one of India's leading IT majors, reported a consolidated net profit of Rs 3,981 crore for the quarter ended March 2023. This figure marks a 10.61% increase compared to the same period last year, when the company's net profit was Rs 3,599 crore. HCLTech's revenue from operations for the quarter was Rs 26,606 crore, up 17.74% from Rs 22,597 crore a year earlier.

Despite beating profit estimates, HCLTech's revenue figures fell short of projections. According to brokerage houses, the company was expected to report a consolidated revenue of Rs 26,801 crore, up 18.6% year-on-year, while consolidated profit after tax was projected to rise by 8.5% to Rs 3,898 crore. On a constant currency basis, HCLTech was expected to report a quarter-on-quarter decline in the range of 1-2%.

Constant currency revenue was down 1.2% quarter-on-quarter and up 10.5% year-on-year, while US dollar revenue was $3,235 million, up 8.1% YoY. The company's EBIT was Rs 4,836 crore, which was 18% of revenue.

HCLTech's CEO & MD, C Vijay Kumar, commented on the results, saying, 

Our pipeline is near an all-time high, which reflects our differentiated business mix and strong client demand for our offerings. We have added 3,674 employees this quarter, and overall employee strength has now grown beyond 225,000. All these set us well in FY24 for healthy revenue growth in the 6-8% range, with operating margins in the 18-19% range.

The company's Board of Directors declared an interim dividend of Rs 18 per equity share for FY24. The record date for payment of the interim dividend is April 28, 2023, and the payment date is May 9, 2023.

HCL Technologies has added 3,674 employees in the fourth quarter, which ended on March 31, 2023. The total headcount of the company currently stands at 225,944. The company also told that total 4,480 freshers were added this quarter while the total freshers count was 26,734.

HCLTech's last twelve month attrition rate came down to 19.5%, which is lower than the previous quarter's rate of 21.7%. This decrease in attrition rate could be attributed to the drying up of IT industry jobs.

About HCL

HCL Technologies is a global IT services provider with a presence in over 50 countries. The company offers a wide range of technology services and solutions, including digital transformation, infrastructure management, engineering services, and business process outsourcing. HCLTech has been recognized by various industry analysts for its innovative approach to IT services and solutions. The company is committed to sustainability and social responsibility, and it has implemented several initiatives to reduce its environmental impact and promote ethical business practices. With a focus on customer satisfaction and a dedication to innovation, HCLTech has become a trusted partner for businesses across various industries.