Noida-based software services giant HCL Technologies reported a 10.52% year-on-year (YoY) rise in net profit at ₹4,235 crore for the second quarter as against ₹3,832 crore in the same period last year, according to the IT services firm’s official statement on Monday. The company's revenue for the July-September period rose 8.2% to ₹28,862 crore, against ₹26,672 crore in the same period last year, making it India's third-largest IT firm. Net profit experienced a modest decline of 0.5% sequentially, whereas the revenue showed an increase of approximately 3%.
EBITDA (Earnings, Before, Interest, Taxes, Depreciation, and Amortisation) surged 22.1% to ₹6,369 crore for this September quarter, up from ₹5,944 crore in the same quarter last year.
The EBIT margin improved to 18.6%, rising by 149 basis points quarter-on-quarter. The EBIT margin was at ₹4,934 crore in September quarter of last year.
HCLTech revised its lower-end revenue growth guidance for the full year FY25 in constant currency to a range of 3.5-5%. The EBIT margin guidance for the year remains between 18-19%.
“We delivered a strong quarter with revenue growing 1.6% QoQ in constant currency and EBIT coming in at 18.6%. This growth was well distributed across verticals, geographies, and offerings. HCL Software has delivered a stellar performance of 9.4% YoY this quarter and 6.4% growth in H1 FY25 in constant currency, demonstrating the increasing relevance of our products for the digital economy. Our pipeline is very strong, including Data & AI, Digital Engineering, SAP migration and efficiency led programs," says C Vijayakumar, CEO and MD of HCLTech.
“Our GenAI offerings like AI Force and AI Foundry are resonating very well with our clients and should be drivers of efficiency, growth, and innovation over the medium term,” Vijayakumar adds.
In Q2, HCLTech secured net new deal wins worth $2.21 billion, up from $1.96 billion in Q1 Fy25. The company also announced another interim dividend of ₹12 per share, bringing the total interim dividend for FY25 so far to ₹42 per share. Earlier, interim dividends of ₹18 and ₹12 per share were issued in May and July, respectively.
The company’s growth in North America and Europe increased by 7.5% YoY and 4.2% respectively.
The primary growth driver for the quarter was the Telecommunications, Media, Publishing, and Entertainment sector, which saw a year-on-year increase of 61.2%. This was followed by the manufacturing sector, growing by 7.1%, the retail and consumer packaged goods sector at 6.2%, and the technology and services sector at 5.6%. Conversely, the BFSI sector experienced a decline of 4.5%.
