News

Published: April 27, 2024
Updated: April 27, 2024

HCL Technologies Reports Marginal Rise in Q4 Profits Amid Revenue Surge

Solid Revenue Growth:

HCL Technologies, India's third-largest IT service provider, unveiled its Q4 FY24 results, showcasing a notable 7.1% increase in revenue from operations. With revenues reaching ₹28,499 crore, the company demonstrated resilience amidst evolving market dynamics.

Stable Profit Performance:

Despite a challenging economic backdrop, HCL Tech's consolidated net profit remained relatively flat at ₹3,986 crore, registering a marginal increase of 0.1% compared to the same period last year. This steady performance underscores the company's ability to navigate uncertainties and deliver consistent results.

Key Highlights Unveiled:

The quarterly results revealed several noteworthy highlights, including the company's sustained commitment to shareholder value creation. HCL Tech reported a commendable operational cash flow (OCF) of $2,711 million, marking a significant 21.6% year-on-year increase, alongside a Free Cash Flow (FCF) of $2,584 million, up 27.7% year-on-year.

Financial Insights:

Analysis of the Profit and Loss (P&L) account showcased a mixed picture, with net profit remaining muted amid decelerating tech spending among clients. However, USD revenue demonstrated a promising six percent year-on-year growth to $3,430 million. Pre-tax profit (EBIT) witnessed a sequential decline but rose 3.8% compared to the previous year.

Dividend Declaration:

In a testament to its commitment to shareholder returns, HCL Tech's board declared an interim dividend of ₹18 per equity share for FY25. This marks the 85th consecutive quarter of dividend payout, reaffirming the company's dedication to creating long-term value for its stakeholders.

Workforce Dynamics:

HCL Tech's robust workforce additions and declining attrition rate reflect its strategic focus on talent management. With a total headcount of 2,27,481 during the March quarter and a net addition of 2,725 employees, the company remains well-positioned to meet evolving industry demands.

Vertical Performance Analysis:

Vertical-wise metrics shed light on the company's performance across sectors, with notable growth observed in telecom, media, publishing, and entertainment verticals. Deal wins also demonstrated positive momentum, with new contracts totaling $2.29 billion in the March quarter.

Strategic Vision:

Looking ahead, HCL Tech remains optimistic about global enterprise technology spend, leveraging AI-led propositions and a robust global delivery model. The company's sustained focus on sustainable and responsible business practices underscores its commitment to long-term growth and societal impact. With solid revenue growth, stable profit performance, and strategic initiatives in place, the company is poised for sustainable growth and value creation in the ever-evolving IT landscape.