HCL Tech profit rises 18.5% to Rs 3,142 crore YoY in September quarter

HCL Tech hit a fresh 52-week high of Rs 910.75 apiece in Wednesday's session, since then the stock has tumbled over 10 per cent. HCL Technologies share price fell 4.4 per cent to Rs 821 apiece on BSE after the IT company announced July-September quarter results. HCL Tech Q2 net profit came at Rs 3,142 crore in July-September quarter, rising 18.5 per cent. The company had posted a net profit of Rs 2,651 crore in the corresponding period of the last year. While, sequentially, net profit rose 7.4 per cent. The revenue of the company stood at Rs 18,594 crore. The company has also declared an interim dividend of Rs 4 per equity share of Rs 2 each for FY21. “HCL Tech result is on the expected line. But the current tech rally has discounted a major chunk of the IT results,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online. This is the key reason due to which stocks are correcting post declaration of results. “Going forward, Hcl Tech will find support at 780 level and resistance will be just near to 900 levels. The stock is likely to see consolidation in this range,” Wagh added. HCL Tech hit a fresh 52-week high of Rs 910.75 apiece in Wednesday’s session, since then the stock has tumbled over 10 per cent. During the July-September quarter, HCL Tech signed 15 transformational deals. The IT company has increased the FY21 EBIT margin guidance to 20-21% from 19.5-20.5%. From the March lows of Rs 375.50, HCL Technologies shares have rallied 118.64 per cent. The dollar revenue growth stood at 6.4 per cent at 2,507 million and the company posted constant currency revenue growth of 4.5 per cent. The earnings before interest and tax (EBIT) margin was at 21.6 per cent, which is a 5-year high. The Record date of October 24, 2020, has been fixed for the payment of the interim dividend. The payment date of the said interim dividend shall be November 9, 2020. “We have delivered a stellar Q2 performance with sequential revenue growth of 4.5 per cent in constant currency and 21.6 per cent EBIT margin,” HCL Technologies President and CEO C Vijayakumar said. He added saying that this growth momentum was driven by continued leadership in Digital Transformation and Cloud businesses and strong stability in the Products and Platforms segment, all of which continue to open diverse growth avenues for the company.Its revenue grew 6.1% to ₹18,594 crore in the quarter under review, from ₹17,528 crore in the corresponding quarter last year. IT firm HCL Technologies on Friday posted 18.5% rise in September quarter net profit at ₹3,142 crore. The IT major had registered a net profit of ₹2,651 crore in the July-September 2019 quarter (as per U.S. GAAP), HCL Technologies said in a regulatory filing. Its revenue grew 6.1% to ₹18,594 crore in the quarter under review, from ₹17,528 crore in the corresponding quarter last year. On a sequential basis, net profit was 7.4% higher from ₹2,925 crore, while top line was higher by 4.2% from ₹17,841 crore in June 2020 quarter. In the second quarter, HCL Technologies recorded revenue growth at 4.5% quarter-on-quarter in constant currency — higher than its estimate of 1.5-2.5% sequential rise. HCL Technologies has maintained its revenue growth guidance of an average of 1.5-2.5% increase quarter-on-quarter in constant currency for the third and fourth quarter. “We have delivered a stellar Q2 performance with a sequential revenue growth of 4.5% in constant currency and 21.6% EBIT margin,” HCL Technologies President and CEO C. Vijayakumar said. This growth momentum was driven by continued leadership in Digital Transformation and Cloud businesses and a strong stability in the Products and Platforms segment, all of which continue to open diverse growth avenues for the company, he added. “Our investments over the last few years in next-gen technologies have held us in good stead during these difficult times and position us strongly to leverage the emerging market opportunities,” Vijayakumar said. The Board of Directors has declared an interim dividend of ₹4 per equity share for the financial year 2020-21. During the quarter, HCL signed 15 transformational deals. At the end of September 2020 quarter, HCL had 1,53,085 employees, while attrition for IT services (on a last 12 month basis) was at 12.2%.
IT firm HCL Technologies on Friday posted 18.5% rise in September quarter net profit at Rs 3,142 crore. The IT major had registered a net profit of Rs 2,651 crore in the July-September 2019 quarter (as per US GAAP), HCL Technologies said in a regulatory filing. Its revenue grew 6.1% to Rs 18,594 crore in the quarter under review, from Rs 17,528 crore in the corresponding quarter last year. On a sequential basis, net profit was 7.4 per cent higher from Rs 2,925 crore, while top line was higher by 4.2% from Rs 17,841 crore in June 2020 quarter. In the second quarter, HCL Technologies recorded revenue growth at 4.5 per cent quarter-on-quarter in constant currency - higher than its estimate of 1.5-2.5% sequential rise. HCL Technologies has maintained its revenue growth guidance of an average of 1.5-2.5% increase quarter-on-quarter in constant currency for the third and fourth quarter. “We have delivered a stellar Q2 performance with a sequential revenue growth of 4.5 per cent in constant currency and 21.6 per cent EBIT margin,” HCL Technologies President and CEO C Vijayakumar said. This growth momentum was driven by continued leadership in Digital Transformation and Cloud businesses and a strong stability in the Products and Platforms segment, all of which continue to open diverse growth avenues for the company, he added. “Our investments over the last few years in next-gen technologies have held us in good stead during these difficult times and position us strongly to leverage the emerging market opportunities,” Vijayakumar said. The Board of Directors has declared an interim dividend of Rs 4 per equity share for the financial year 2020-21. During the quarter, HCL signed 15 transformational deals. At the end of September 2020 quarter, HCL had 1,53,085 employees, while attrition for IT services (on a last 12 month basis) was at 12.2%.
IT major HCL Technologies (HCL Tech) on Friday reported 18.5 per cent rise in net profit at Rs 3,142 crore YoY in the September quarter. In Q-o-Q, the profit rose a 7.4 per cent for Q2. The IT major had registered a net profit of Rs 2,651 crore in the July-September 2019 quarter (as per US GAAP), HCL Technologies said. HCL Tech has also approved an interim dividend of Rs 4 apiece on Friday. The company's rupee revenue in Q2 rose 4.2 per cent to Rs 18,594 crore from Rs 17,841 crore in the previous quarter, while the dollar revenue surged 6.4 per cent to $2,507 million. In constant currency, HCL reported 4.5 per cent growth. HCL's earnings before interest and tax stood at Rs 4,016 crore, recording a 9.7 per cent growth from Rs 3,660 crore during the previous quarter. The EBIT margin of HCL Tech rose to a five-year high to 21.6 per cent on a quarter-on-quarter basis after surging 110 bps. "We have delivered a stellar Q2 performance with a sequential revenue growth of 4.5 per cent in constant currency and 21.6 per cent EBIT margin," HCL Technologies President and CEO C Vijayakumar said. In terms of future guidance, HCL sees constant currency revenue growth of 1.5-2.5 per cent in Q3 and Q4. The EBIT margin in FY21 is also expected to surge to 20-21 per cent. "Our investments over the last few years in next-gen technologies have held us in good stead during these difficult times and position us strongly to leverage the emerging market opportunities," Vijayakumar said. As per the company, it signed as many as 15 transformational deals in the second quarter of 2020. Meanwhile, HCL Tech stock was trading 3.30 per cent or Rs 28.40 down at Rs 831.6 from the previous session close of Rs 860 on the National Stock Exchange today.