HCL Tech Q3 Results: Net profit rises 5.5% to ₹4,591 crore, dividend declared; 5 key highlights | Company Business News

HCL Tech Q3 Results: Net profit rises 5.5% to ₹4,591 crore, dividend declared; 5 key highlights | Company Business News

HCL Tech Q3 Results: HCL Technologies announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Monday, January 13, reporting a rise of 5.5 per cent in its consolidated net profit to ₹4,591 crore, compared to ₹4,350 crore in the corresponding period last year. India's third-largest IT service major's revenue from operations in the third quarter of FY25 rose five per cent to ₹29,890 crore, compared to ₹28,446 crore in the year-ago period. 

"HCL Tech delivers another quarter of solid growth at 3.8 per cent QoQ in constant currency and EBIT at 19.5 per cent. I am pleased that this growth is powered by broad-based performance across business lines as our clients across verticals and geos reaffirm their confidence in our digital and AI offerings," said C Vijayakumar, CEO and Managing Director, HCL Tech.

Sequentially, net profit and revenue rose 8.4 and 3.5 per cent respectively 

The IT major's board declared the fourth interim dividend of Rs. 18 per equity share of Rs. 2 each of the company for FY25. This includes a special dividend of Rs. 6 per share to celebrate 25 years of the IT major's public listing.

"The record date for the payment of the aforesaid interim dividend shall be January 17, 2025 and the payment date of the said interim dividend shall be January 24, 2025, " said HCL Tech in a regulatory filing to the stock exchanges today

This represents 88th consecutive quarter of dividend pay-out. The new deal wins stood at $2.1 billion during the quarter, compared with $2.22 billion in the previous quarter and $1.93 billion in the year-ago period.

"HCL Tech is well positioned as AI-led transformation brings new opportunities for growth. We continue to deliver industry-leading performance with governance and sustainability at the core," said Roshni Nadar, Chairperson, HCL Tech..

HCL Tech updated its revenue growth forecast for the current fiscal year to 4.5 per cent-5 five per cent in constant currency terms from 3.5 per cent-5 per cent previously. 

"Our razor-sharp focus on achieving topline growth with healthy margins is reflected in our highest ever EBIT of ₹5,821 crore and net Profit of ₹4,591 crore this quarter. LTM Return on Invested Capital continues its growth trajectory and stands at 36.6 per cent for the company (up 385 bps YoY), and at 44.7 per cent for Services (up 455 bps YoY). This has further strengthened our Balance Sheet, helping us end the quarter with our highest ever cash balance of ₹27,707 crore," said Shiv Walia, Chief Financial Officer, HCL Tech.

The services revenue growth is expected to be between 4.5-5 per cent YoY in constant currency (CC). The EBIT margin is likely to be between 18-19 per cent. Attrition continued to decline, with the last 12-month (LTM) figure dropping to 13.2 per cent, reflecting improved employee retention.

"HCL Tech delivers another quarter of solid growth at 3.8 per cent QoQ in constant currency and EBIT at 19.5 per cent. I am pleased that this growth is powered by broad based performance across business lines as our clients across verticals and geos reaffirm their confidence in our digital and AI offerings" said C Vijayakumar CEO, Managing Director, HCL Tech.

“Our new deal bookings were healthy during the quarter at $2.1B with wins across services and software. We are positioning ourselves for a future that is transformative, with AI empowering businesses and employees. We continue to see growing demand for our AI led propositions across services and software offering,” added Vijaykumar.

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