HCL Tech Q4 profit surges 10.8% to ₹3,983 cr; revenue up 17.7%

Beating analyst estimates, IT major HCL Technologies has reported a consolidated net profit of ₹3,983 crore for the January-March quarter of 2022-23, recording a 10.8% rise as compared to ₹3,599 crore profit in the year-ago period.

The Noida-headquartered software service company's revenue from operations surged 17.74% as compared to ₹22,597 crore during the same period last year, HCL said in an exchange filing.

HCL's constant currency revenue, however, dipped 1.2% on a quarter-on-quarter basis but it surged 10.5% year-on-year. HCL's EBIT for the said quarter stood at ₹4,836 crore, which is 18.1% of its total revenue in Q4 FY23 and up 18.8% YoY.

HCL has announced a dividend of ₹18 per share for the said quarter, which is its 81st consecutive quarter of dividend pay-out.

In terms of bookings, HCL won 13 large deals, including 10 in services and three in software in Q4. The total contract value of the new deal wins, however, dipped 8% YoY to $2,074 million in Q4.

As of March 31, 2023, HCL's total headcount stood at 2,25,944, with a net addition of 3,674 in the said quarter. Overall, 4,480 freshers were hired by the company in the said quarter. HCL's last 12-month attrition rate was recorded at 19.5%.

In contrast, Infosys’ attrition rate stood at 20.9% in Q4. TCS’ attrition rate dipped to 20.1% in Q4.

"We have delivered a stellar performance in FY23, crossing ₹1 lakh crore of revenue powered by industry-leading services growth of 15.8% in constant currency. Out new bookings for FY23 grew by 6.6%. Our pipeline is near an all-time high, which reflects our differentiated business mix and strong client demand for our offerings. All these set us well in FY24 for a healthy revenue growth in the 6-8% range, with an operating margin in 18-19% range," said C Vijayakumar, CEO and MD, HCL Tech.

Throughout the financial year 2022-23, HCL Tech's net income grew 10% to ₹14,851 crore, while its revenue rose 18.5% to ₹101,456 crore; in constant currency, HCL's revenue was up 13.7%. Total bookings for FY23 stood at 57, including 32 in services and 25 in software. The total headcount as of March 31, 2023, was 2,25,944, with a net addition of 17,067. The company added 26,734 freshers in the year, with a 12-month attrition rate of 19.5%.

In its revenue guidance for FY24, HCL Tech has said its revenue is expected to grow between 6-8% YoY in constant currency, while its services revenue growth is expected to be between 6.5% to 8.5% YoY in constant currency. The company expects the EBIT margin to be between 18-19% in FY24.