HCLTech Q1 profit jumps 20% to ₹4,257 cr

Net profit of HCL Technologies Ltd grew 20.4% year-on-year to ₹4,257 crore for the quarter ended June. Profit increased 6.8% on a sequential basis.

Revenue from operations rose 6.7% year-on-year to ₹28,057 crore in the first quarter of financial year 2024-25. Sequentially, revenue was down 1.6%.

The Noida-headquartered IT firm’s board declared an interim dividend of ₹12 per share.

The software firm’s EBIT margin came in at 17.1% in the June quarter. EBIT at ₹4,795 crore was up 7.5% year-on-year and down 4.4% on a quarterly basis.

For the ongoing fiscal, HCLTech has guided EBIT margin to be between 18% and 19%.

The company’s revenue growth guidance is in the range of 3%-5% year-on-year in FY25. Services revenue growth is expected to be between 3% and 5%.

HCLTech’s headcount stood at 219,401 with net addition of 8,080 employees in the first quarter. The IT firm added 1,078 freshers. Attrition rate fell to 12.8% in Q1 FY25, down from 16.3% in Q1 of last year.

“We are pleased to report another quarter of industryleading performance with 5.6 % YoY revenue growth on constant currency basis. Our Q1 Revenue and EBIT performance was slightly better than our expectations. We clocked in $2B TCV of new business Bookings. We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies,” says C Vijayakumar CEO and managing director HCLTech.

HCLTech delivered a revenue growth of 6.7%, healthy given the global environment, says Prateek Aggarwal, chief financial officer, HCLTech. “EBIT margins came in at 17.1%, steady on YoY basis. We delivered PAT of ₹4,257 Crores for the quarter, which translates to YoY growth of 20.4%. Our cashflow generation remains robust with LTM FCF at ₹21,637 Crores, 133% of PAT and 88% of EBITDA. We remain committed to improving our capital efficiency and are pleased to report Last Twelve Month (LTM) ROIC for the company is up 350 bps YoY at 34.6% and for Services business is up 476 bps YoY at 42.8%,” says Aggarwal.

With HCLTech’s future-ready portfolio, the company is well placed to tap emerging opportunities led by GenAI, says Roshni Nadar Malhotra, chairperson of HCLTech. “We remain committed to doing business sustainably and responsibly as we continue to supercharge progress for our clients,” says Malhotra.