HCLTech Q4 profit flat at ₹3,986 cr; revenue up 7.1%

HCLTech Q4 profit remained flat at ₹3,986 crore, up just 0.1% year-on-year while INR revenue surged 7.1% to ₹28,499 crore. The constant currency revenue increased 6%.

HCLTech, in an exchange filing, says its service constant currency(CC) revenue recorded 6.7% surge, led by growth in telecommunications, media, publishing and entertainment. The digital CC revenue grew 6.3%.

The EBIT income was recorded at ₹5,018 crore, a growth of 3.8% year-on-year. The company declared a dividend of ₹18 per share for the quarter. Total new deal wins stood at $2,290 million, with 21 new large deals comprising 13 in services and 8 in software.

The Noida-based IT major's total headcount as of March 31, 2024, was 2.27 lakh, with a net addition of 2,725 and a fresher addition of 3,096 people in Q4.

For the fiscal year FY24, the INR revenue surged 8.3% year-on-year to ₹109,913 crore, while the revenue in constant currency increased 5.3%. EBIT at ₹20,027 crore grew 8.4%, while profit grew 8.4% at ₹20,027 crore.

The company's full-year dividend came in at ₹52 per share, with a payout ratio of 89.6% for FY’24.

In terms of bookings, HCLTech recorded a 10% rise in new deal wins to $9,759 million. Of these, 73 were large deals comprising 36 in services and 37 in software. The company's headcount for the fiscal year came in at 2,27,481, with a net addition of 1,537 and a fresher addition of 12,141. HCLTech's full-year and Q4 LTM attrition rate was recorded at 12.4%.

“HCLTech continues to lead the industry in FY24 with good USD revenue growth of 5.4% YoY during challenging times through our strong commitment to our clients and our people. More importantly, we have translated this growth into even higher value creation for our shareholders with our OCF coming at US$ 2,711 Mn, up 21.6% YoY and FCF at US$ 2,584 Mn, up 27.7% YoY," C Vijayakumar, CEO & Managing Director, HCLTech.

He adds that looking ahead, global enterprise technology spend will only grow with adoption of AI. "We are well positioned to capitalise with our AI led propositions, Global delivery model and ideal mix of technology services and products.”

Roshni Nadar Malhotra, chairperson says HCLTech's focus on doing business "sustainably and responsibly" is sharper than ever.

HCLTech's share closed at ₹1,472 .30 on the BSE today, with the share price dipping 2.08% against the previous trading session.

Among HCLTech's rivals, Wipro Ltd reported an 8% year-on-year (YoY) fall in consolidated net profit during the January-March quarter of FY2023-24 at ₹2,835 crore. Its revenue dipped 4.2% compared to ₹23,190.3 crore in the year-ago period.

Net profit of Infosys Ltd rose 30% year-on-year to ₹7,969 crore for the quarter ended March 31, 2024, compared with ₹6,128 crore in the year-ago quarter. Its revenue came in at ₹37,923 crore, up 1.3% YoY.

IT major TCS' Q4 FY24 profit was ₹12,434 crore in the January-March quarter, up 9% YoY, while revenue came in at ₹61,327 crore, a 3.5% growth.