HCLTech Q4 net profit rises 11 per cent at Rs 3,983 crore, revenue increases 18 per cent
For FY23, the company’s revenue crossed the Rs 1,00,000 crore mark. HCLTech Services revenue for the full year was up 15.8% in constant currency.
BENGALURU: HCLTech on Thursday reported a 10.8% jump in its Q4 net profit to Rs 3,983 crore compared to Rs 3,593 crore in the year-ago period. However, its net profit was down 2.8% on a sequential basis. Its profit figure beat estimates. The company’s revenue stood at Rs 26,606 crore for the quarter ending March 31, 2023, a 17.7% jump compared to Rs 22,597 crore in the year-ago period.
For FY23, the company’s revenue crossed the Rs 1,00,000 crore mark. HCLTech Services revenue for the full year was up 15.8% in constant currency. The company’s EBIT for FY23 stood at Rs 18,483 crore, up 14.1%. The company has won 57 large deals during FY23.
C Vijayakumar, CEO and MD, HCLTech said the growth was across all sectors. “We have crossed an important milestone in our software business - clocked ARR of $1 billion level, which is one of the key measurements for software companies,” he said.
He added that there are a lot of dynamics externally. “We have some comfort in our ability to navigate this dynamic market because of the mix of capabilities and expertise that we have in service offerings. These offerings are very relevant when customers want to invest a lot in transformation,” he added.
“All these set us well in FY24 for a healthy revenue growth in the 6-8% range with operating margins in the 18-19% range,” the CEO added. While there is some stress and uncertainty, it is largely on the discretionary spend side, the company said. In financial services, the company continues to see good opportunities as it witnessed 6.9% growth sequentially in financial services on back of large deal wins.
HCLTech outran its peers TCS and Infosys in Q4 hiring, as it added 3,674 employees in Q4 and overall employee strength is now over 2,25,000. TCS in Q4 added only 821 employees and Infosys headcount in the fourth quarter dropped by 3,611 employees. For FY23, it added 17,067 people and 26,734 freshers. The company’s LTM attrition stood at 19.5% in FY23. The Board has announced a dividend of Rs 18 per share for the quarter, taking the total payout to `48 per share for the year.
HCL outruns peers in hiring
HCLTech outran its peers TCS and Infosys in Q4 hiring, as it added 3,674 employees in Q4FY23 and overall employee strength is now more than 2,25,000. TCS in fourth quarter added 821 employees and Infosys headcount in the fourth quarter dropped by 3,611 employees.