HCLTech's net profit falls by 25.6 per cent for fourth quarter of FY2020-21

On Friday, HCLTech slumped to the fourth spot amongst the India's biggest IT services firm, replaced by Wipro which had a market capitalization of Rs 2.65 trillion on BSE.
HCL Technologies image used for representation (File Photo | Reuters)
HCL Technologies image used for representation (File Photo | Reuters)

BENGALURU: IT-services major HCLTech posted a  sequential decline in net profit by 25.6 per cent at Rs 2,962 crore (6.1 per cent decline YoY) excluding the impact of one-time bonuses paid to the employees for the fourth quarter of FY2020-21.

The Noida-headquartered firm said that the total bonuses paid to the employees during the quarter was Rs 575 crore (after tax adjustments). On Friday, HCLTech slumped to the fourth spot amongst the India's biggest IT services firm, replaced by Wipro which had a market capitalization of Rs 2.65 trillion on BSE whereas HCL Tech’s m-cap stood at Rs 2.62 trillion.

The other peers including Infosys, TCS have posted a sequential rise in net profit margins. HCLTech’s revenue for the quarter rose by 1.8 per cent on QoQ basis. The company said that it expects the revenue to grow in double digits for FY22, like the other peers whereas its EBIT margin is expected to be between 19-22 per cent for the financial year.

The net profit for the FY21 rose by 17 per cent YoY at Rs 13,011 crore whereas the revenue stood at Rs 75,379 crore ( an increase of 6.7  per cent YoY).
 
Despite the slump in profit, HCL Tech said that the new deal value for the quarter was at an alltime high at USD 3.1 billion, an increase of 49 per cent YoY. The total contract value for FY21 was reported at USD 7.3 billion, an 18 per cent jump YoY.

Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies said that the  ongoing COVID-19 pandemic has drastically changed our world - society at all levels, businesses around the globe, and our own individual lives, as well as those of families, friends, and colleagues.
 
"In the past year, we have worked relentlessly to respond to the disruption of the pandemic, a sign of the tenacity of the human spirit. Enterprises, too, have worked to adapt to and embrace the transformed business environment and ecosystems, partly through the adoption of next-generation technologies," said Nadar.

"At HCL, we have always believed that technology and people working together can generate positive changes that will advance the world to a better tomorrow. In fact, at HCL, we call this partnership of digital technology and the human spirit 'The New Essential'," he said.

"As the global economy revives and all of us emerge from this crisis, I am sure that HCL will be even better prepared to meet future challenges. Armed with our core beliefs of innovation and invention and driven by a strong faith in humanitarian values, we will achieve our business goals, that are aligned with the socio-economic development of the communities where we work," he added.

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