HCL Tech Q2FY23 Results: Net Profit Rises 7% YoY To Rs 3,489 Crore, Revenue Up 19.5%, Dividend Declared

IT major HCL Technologies on Wednesday reported a 7.05 per cent year-on-year increase in its consolidated net profit to Rs 3,489 crore for the September 2022 quarter (Q2FY23). The company’s revenue jumped 19.51 per cent during July-September 2022 to Rs 24,686 crore, compared with Rs 20,655 crore a year ago.

HCL Tech’s net profit had stood at Rs 3,259 crore in the corresponding period a year ago.

The company’s board of directors has declared an interim dividend of Rs 10 per equity share of Rs 2 each of the company for the financial year 2022-23. The record date of October 20, 2022, fixed for the payment of the aforesaid interim dividend has been confirmed by the board. “The payment date of the said interim dividend shall be November 2, 2022,” according to a BSE filing.

On the business outlook, HCL Tech has raised its revenue growth guidance for FY23 and now expects a 13.5-14.5 per cent jump in revenue in constant currency, compared with the 12-14 per cent projected earlier.

HCL Tech added 10,339 freshers during July-September 2022. HCL Tech said its total employees count stood at 219,325 as of September 30, 2022, and its net addition stood at 8,359 employees during the quarter. For this quarter, HCL Tech’s attrition (last twelve months) remained at 23.8 per cent in Q2FY23.

C Vijayakumar, CEO and managing director of HCL Tech, said, “HCL Tech has delivered yet another solid performance this quarter with revenue growing at 3.8 per cent QoQ and 15.8 per cent YoY in constant currency and EBIT at 18 per cent up 93 bps QoQ. Our services business grew 5.3 per cent QoQ and 18.9 per cent YoY in constant currency, led by strong demand for cloud, engineering and digital services.”

He added that this is a validation of the strategic choices the company made and the effectiveness of its operational framework. The company’s bookings and pipeline continue to be very strong, that augurs well for our future growth. “These reflect our constant and continuing efforts to supercharge outcomes for all our stakeholders. Our new brand positioning of Supercharging Progress has
been well received and I am confident will help us deliver on our strategic priorities,” Vijayakumar said.

HCL Tech Chief Financial Officer Prateek Aggarwal said, ““The highlight of the quarter’s performance is growth of 19.5 per cent YoY, with revenue at Rs 24,686 crore. EBIT (earnings before interest and tax) has increased 12.3 per cent and PAT has increased 7.1 per cent YoY. We have significantly improved EBIT margins sequentially, led by operating leverage and efficiencies, despite impact of salary increments for the largest section of our people.”

He said the company’s H1 growth and deal wins lead the company to increase its revenue guidance to 16-17 per cent for services and 13.5-14.5 per cent at the company level, reflective of its strong growth visibility.

“Our EBIT guidance is now in a narrower range of 18-19 per cent. Our Cash Flow
generation continues to be robust with OCF at $2,049 million, being 114 per cent of net income,” the company added.

Shares of HCL Technologies on Wednesday rose 1.39 per cent, or Rs 13.05, to close at Rs 951.65 apiece on the BSE.

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