HCL Tech net profit jumps 7% to Rs 3,489 crore, dividend declared

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HCL Tech FY23 earnings

HCL Tech Q2 earnings: Today, IT major HCL Tech has reported its earnings for the July-Sep 22 period. The topline and bottomline have grown on-year. and the company has declared an interim dividend also. In 2022, HCL Technologies' share price has fallen nearly 28%. Let us look at its September quarter results in detail.

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HCL Tech Results: Highlights

HCL Q2 net profit above estimates: HCL Tech has reported a 7% on-year increase in its net profit to Rs 3,489 crore, above street estimates. Analysts had earlier estimated a profit of about Rs 3,411 crore. Compared to the previous quarter, profits increased by 6.2%. 

HCL Tech Q2 results: Margin increase: HCL Tech’s EBIT margin increased to 18%, a rise of 93 bps from last quarter. Analysts had earlier anticipated a margin of 17.4%. Net margin stood at 14.3% up 13bps as compared to the previous quarter. 

HCL Q2 revenue: HCL Tech’s revenue grew 19.5% on-year to Rs 24,686 crore, largely in-line with estimates. Dollar revenue rose 15.8% on-year to $3,082 million. On a quarterly basis, revenue grew by 5.2% in INR and 3.8% in constant currency.

HCL Tech Q2FY23 results: Guidance retained- In constant currency terms, the company expects revenue to grow in the 13.5-14.5% range and service revenue to grow around 1617%. The forecasted EBIT margin has been revised from 18% to 19%.

HCL Tech results review: New Contract and large deals - The company won new contracts worth $2,384 million in the quarter ending September, registering 6% on-year growth. The number of large deals bagged by the company was 11 - 8 in Services and 3 in Products. 

HCL Tech Q2 results: Dividend declared - HCL has also declared an interim dividend of Rs 10 per share. The Record date has been fixed as October 20, 2022. The dividend will be paid on November 2, 2022.

Check TCS's Q2FY23 results in detail and compare - Click here

HCL Tech Q2 earnings: Attrition jumps - The company’s attrition rate stood at 23.8% at the end of the second quarter, same as the previous quarter. The company added 8,359 employees in the second quarter, taking the total headcount to 2,19,325. 

HCL Tech Q2: Management commentary -  “Our new brand identity brings razor-sharp focus to our go-to-market strategy and execution capabilities to supercharge the digital transformation of our clients with the best of technology and people.", Roshni Nadar Malhotra, Chairperson of HCL Tech.

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