Last updated: 19 Jul, 2021 | 02:36 pm
Profit in line with estimates: HCL Tech has delivered a 9.5% on-year rise in its Net Profit in the quarter ended June 21 at Rs 3,214 crore which is in line with analyst estimates. On a quarterly basis, the profit jumped nearly three-fold. However, the numbers are not directly comparable, as the company had declared a one-time bonus in the Jan-Mar 21 period, impacting its bottomline.
HCL Tech quarterly results: Revenue and Profit in last few quarters
HCL Tech’s revenue grew 2.2% on-quarter to ₹20,068 crores which is slightly above the analyst estimates.Consolidated revenue increased 12% on yearly basis to Rs 20,068 crore as against Rs 17,842 crore in June 2021. Revenue in dollar terms increased by 0.9% to $2,720 million on quarterly basis and by 15.5% on yearly basis. The revenue was supported by robust deal wins in the quarter. The growth in the topline of the company was led by Engineering and R&D vertical, which grew 4.4% on-quarterly.
HCL Tech Q1 Results 2021: Segment revenue
Margin declines: EBIT Margin contracted to 19.6% for the quarter ended June 21, a drop of 1.2% from the previous quarter. Wages, new hirings and adverse forex movement weighed on the company’s margins in the quarter.
Robust Guidance: HCL Technologies expects revenue in FY22 to grow in double digits in constant currency terms. It expects EBIT margin for FY22 to range between 19% and 21%.
Dividend: HCL Tech has declared an interim dividend of Rs 6 per equity share for FY 2021-22 being 74 th consecutive quarter of dividend pay-out
Deal wins: Strong Booking performance in Q1 TCV of New Deal wins at US$ 1664 mn registering 37% YoY growth enabled by 8 Large Services deal wins and 4 significant product wins.
Attrition rate: IT services attrition (on last 12 months basis) stood at 11.8% versus 14.6% a year earlier and 9.9% as of March 2021.The drop in attrition was due to increased employee engagement initiatives and large-scale upskilling programmes.
HCL Tech results: Review
HCL Technologies has reported a good set of numbers for Apr- Jun 21 period, meeting street estimates on revenue as well as profitability. The growth in revenue was backed by good traction witnessed in Engineering and R&D services. The margins contracted, as the full impact of wage hikes was felt in the quarter. The company is confident of good on-quarter growth for the rest of this year, on the back of a strong deal pipeline. Anticipating demand, the company has also added 7,500+ net hiring in the quarter.
The Covid-19 pandemic has forced a tectonic shift in business processes to move towards greater digitization. This has helped the IT sector to bounce back faster than other industries. HCL Tech’s peers Tata Consultancy Services, Infosys and Wipro also saw their revenue rise in the quarter ended June, aided by deal wins. 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.