HCLTech Q3 net rises 19 per cent, beats Street estimates

HCLTech’s EBIT margin guidance in FY23 has been narrowed to 18%-18.5%.
Image used for representational purposes
Image used for representational purposes

BENGALURU:  HCLTech on Thurday reported a strong quarter with 19% increase in net profit at Rs 4,096 crore for the quarter ending December 31, 2022, compared to Rs 3,442 crore reported in the year-ago period. Beating Street estimates, its revenues grew 19.6% year-on-year (YoY) at Rs 26,700 crore, compared to Rs 22,331 crore in the year-ago period.

The company has won 17 large deals and its new deal wins were at $2,347 million, up 10% YoY. HCLTech revised its FY23 revenue guidance between 13.5% and 14% YoY, down from 13.5-14.5%, and services revenue is expected to be between 16% and 16.5% YoY in constant currency. For the December quarter, the company’s EBIT Margin stood at 19.6%, up 165 bps q-o-q.

HCLTech’s EBIT margin guidance in FY23 has been narrowed to 18%-18.5%. “We are committed to bringing together the best of technology and our people to supercharge progress for clients in their digital transformation journeys,” said Roshni Nadar Malhotra, Chairperson, HCLTech. “We have delivered a strong performance this quarter across all key metrics – revenue growth, margin expansion, booking growth and people metrics. Our margins at 19.6% this quarter, increased 60 basis points YoY,” said C Vijayakumar, CEO & managing director, HCLTech.

“The booking growth was led by IT operating model transformation, cloud adoption and large vendor consolidation deals. We are confident to deliver industry leading growth over the medium term supercharged by our positioning, our strong propositions and our passionate people,” he added. The company has added 2,945 employees in the quarter, including 5,892 freshers. Its attrition rate reduced by 2%  to 21.7%. he board of directors has declared an interim dividend of Rs 10 per equity share of Rs 2 each.

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