HCL Tech Q3 results update!
Last updated: 15 Jan, 2021 | 11:08 am
- Profit beats estimates: HCL Tech has reported a 26.7% on-quarter rise in consolidated net profit to ₹3,982 crore in Q3FY21, beating analyst estimates. Analysts had earlier estimated a profit of about ₹3,140 crore.
- Robust revenue growth: HCL Tech’s revenue grew 3.8% on-quarter to ₹19,302 crore. This is higher than the company’s guidance provided in the previous quarter of 1.5%-2.5%. Dollar revenue rose 4.4% to $2,617 million.
- Margin expansion: HCL Tech’s margin expanded on both quarterly as well as yearly basis. Earnings before interest, tax (EBIT) margin stood at 22.9% versus 21.6% in the previous quarter. Margins rose despite wage hikes in the quarter.
- Strong Guidance: The company has raised revenue guidance in Constant Currency for Q4 FY21 from 1.5-2.5% to 2-3% and EBIT margin in FY21 is in the range of 21-21.5% compared to 20-21% earlier.
- Dividend: HCL also declared a Dividend of ₹4 per share, for which the record date has been fixed as Jan 23, 2021. The payout date has been fixed as Feb 8, 2021.
- Deal wins: HCL signed 13 transformational deals, led by key industry verticals including life sciences and healthcare, public services (energy & utilities) and manufacturing.
HCL Technologies has reported a strong set of numbers for Q3FY21, backed by good traction witnessed in Digital, Cloud and Products & Platform segments. The Covid-19 pandemic has forced a tectonic shift in businesses processes to move towards greater digitization. This has helped the IT sector to bounce back faster than other industries. HCL’s investments over the last few years in next-gen technologies have held them in good stead and positioned them strongly to leverage market opportunities.