BENGALURU: IT company HCLTech on Wednesday reported a 7% YoY increase in its consolidated net profit for the quarter ended September 30, at Rs 3,489 crore, compared to Rs 3,259 crore in the same period last year.
Beating Street estimates, the company’s second quarter revenue from operations stood at Rs 24,686 crore, a 19.5% increase from Rs 20,655 crore in the year-ago period. The company has also revised its revenue guidance for the current fiscal to 13.5%-14.5% YoY from 12-14% projected earlier. Its EBIT margin guidance revised to 18%-19%.
“Our services business grew 5.3% QoQ and 18.9% YoY in constant currency, led by strong demand for cloud, engineering and digital services,” said C Vijayakumar, CEO and managing director at HCLTech. “Our bookings and pipeline continue to be very strong, which augurs well for our future growth,” he added.
Its attrition rate stood at 23.8% in IT services, and the company added 10,339 freshers during the second quarter. HCLTech’s TCV bookings (new deal wins) for the second quarter stood at $2,834 million, up 16% QoQ, up 6% YoY. While its EBIT margin was at 18%, up 93 bps QoQ, net margin was at 14.1%, up 13 bps QoQ.
“We have significantly improved EBIT margins sequentially, led by operating leverage and efficiencies, despite the impact of salary increments for the largest section of our people. Our H1 growth and deal wins lead us to increase our revenue guidance to 16-17% for services and 13.5-14.5% at the company level, reflective of our strong growth visibility. Our EBIT guidance is now in a narrower range of 18-19%,” said Prateek Aggarwal, chief financial officer, HCLTech.
The company has added 8,359 staff during the quarter, taking the total number of employees to 2,19,325. It also announced Rs 10 dividend, its 79th consecutive quarter of dividend pay-out. The firm recently launched its new brand identity.