BENGALURU: HCL Tech’s June quarter performance beat Street estimates as the IT services firm posted a 20% year-on-year increase in its consolidated net profit at Rs 4,257 crore compared to Rs 3,534 crore in the year-ago period.
Its revenue from operations in the first quarter was Rs 28,057 crore, up 6.7% compared to Rs 26,296 crore in the same quarter last year.
The company retained its constant currency (CC) revenue growth guidance between 3% and 5% in FY25 and EBIT margin is expected to be between 18% and 19%.
Briefing the media on outlook for Q2, C Vijayakumar, CEO & MD, HCLTech said, “In the second quarter, we expect to grow in all geographies and verticals except financial services. Even in manufacturing we expect to recover in Q2.”
Usually Q1 is a seasonally soft quarter for the company.
He added that Q2 will be a soft quarter for financial services after that we are confident of sequential growth in financial services. Its financial services was down 1.3% in Q1 and manufacturing grew 3.5% YoY.
The CEO added that discretionary spending will be the same as last year and we continue to spend on Gen AI and other emerging technologies. “We clocked in $2 billion TCV (total contract value) of new business bookings,” he said.
The CEO said there are over 200 Gen AI PoCs (proof of concepts) and several of them are going into production.
Roshni Nadar Malhotra, Chairperson, HCLTech, said, “With our future-ready portfolio, we are well placed to tap emerging opportunities led by GenAI.” Prateek Aggarwal, CFO said, the company delivered an INR revenue growth of 6.7% YoY, healthy given the global environment. EBIT margins came in at 17.1%, steady on YoY basis.
The company’s headcount was reduced by 8,080 in the first quarter and it lost around 7,398 employees due to divestiture. It added 1,078 freshers in the June quarter and is likely to hire 10,000 freshers in FY25.
The company’s chief people officer Ramachandran Sundararajan said the headcount is in line with what we have planned for and attrition level was at 12.8%, and we expect it to continue at similar levels.
The company has announced many GenAI deal wins including a leading US-based financial services company selected HCLTech to build a GenAI platform with robust AI governance and LLM Ops. The company also announced that an APAC-based financial services major selected the company to help accelerate its enterprise-wide data and AI transformation.
First quarter FY25 earnings
Net Income at Rs 4,257 crore, an increase of 20.4% YoY
Revenue of Rs 28,057 crore, an increase of 6.7% YoY
EBIT at Rs 4,795 crore, an increase of 7.5% YoY
New deal wins at $1,960 mn
Dividend of Rs 12 per share
Total headcount at 219,401
LTM Attrition at 12.8%