HCL Tech Q4 profit rises to ₹3,593 crore

HCL Technologies reported a net profit of ₹3,593 crore for the quarter ended March 31, 2022, marking a rise of 226% on annual basis. The Indian IT major had reported a net profit of ₹1,102 crore in the corresponding quarter last fiscal.

However, excluding the impact of one-time milestone paid bonus to employees and the DTL on goodwill expense last year, the profit rose only 24%.

Revenue from operations stood at ₹22,597 crore, up 15% from ₹19,641 crore a year ago. Earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased 4.2% to ₹5,053 crore from ₹5,276 crore. EBITDA margin at the end of the March quarter stood at 22.4%.

For the entire FY22 fiscal, HCL Technologies reported a net profit of ₹13,499 crore, up 4.3% from ₹12,942 crore. The company earned ₹85,651 crore as revenue during the fiscal, marking an increase of 13.6% from ₹75,379 crore last fiscal.

As on March 31, 2022, the total headcount of the company stood at 208,877, as compared to 197,777 at the end of December 2021, or 168,977 at the end of March 2021. Attrition rate swelled significantly to 21.9%, compared to 19.8% seen a quarter before, or 9.9% a year ago.

“We have delivered yet another stellar quarter in our services business, where the revenue is up 5.0% QoQ and up 17.5% YoY in constant currency. Over the last three quarters, our services business has been consistently growing organically at 5% and higher, delivering one of the highest CQGR in the industry. Our overall growth on YoY basis stands at 12.7% which is better than the guidance led by strong momentum in digital, cloud and engineering services. We continue to invest proactively to create a larger talent pool to address the demand”, said C Vijayakumar, chief executive officer and managing director, HCL Technologies.

The board of HCL Technologies also announced a dividend of ₹18 per share for the quarter, taking the payout for the year to ₹44 per share for the year. With this, the earnings per share improved to 88.4%, higher than guided range of 75%.

“The board of directors has declared an Interim Dividend of ₹18 per equity share of ₹2 each of the company for the financial year 2022-23,” the company said in an exchange filing. “The record date of April 29, 2022 fixed for the payment of the aforesaid interim dividend has been confirmed by the board of directors. The payment date of the said interim dividend shall be May 11, 2022.”

For the financial year 2022-23, HCL Technolgies gave a revenue growth outlook of 12-14% in constant currency terms. EBIT margin is expected to be between 18% and 20%, the company added.

The HCL Tech share closed at ₹1,099.60 today on BSE, up 10.05 points or 0.92%.