HCLTech Q2 Results: Profit Meets Estimates, FY25 Guidance Unchanged
The attrition rate for HCL Technologies increased to 12.9% in the latest quarter, slightly up from 12.8% recorded in the April-June period.
HCL Technologies Ltd., India's third-largest IT company by market capitalisation, reported a sequential revenue increase of 2.9% for the second quarter ended September 2024. The company’s revenue totalled Rs 28,862 crore, aligning with analysts' estimates of Rs 28,637.2 crore, as tracked by Bloomberg.
In constant currency terms, revenue rose 1.6% quarter-on-quarter and 6.2% year-on-year. HCLTech's services revenue increased by 1.6% QoQ and 5.9% YoY, with digital revenue showing a rise of 7.8% YoY, contributing 38.5% of total services revenue.
HCL Tech Q2 Results: Key Highlights (QoQ)
Revenue up 2.9% to Rs 28,862.00 crore versus Rs 28,057.00 crore. (Bloomberg estimate: Rs 28,637.2 crore)
Net Profit down 1% to Rs 4,237.00 crore versus Rs 4,259.00 crore. (Bloomberg estimate: Rs 5,111.7 crore)
Ebitda up 12% to Rs 5,362.00 crore versus Rs 4,795.00 crore. (Bloomberg estimate: Rs 4,061.6crore)
Margin at 18.6% versus 17.1%. (Bloomberg estimate: 17.8%)
The company’s guidance for the current fiscal year remains unchanged. Revenue growth and services revenue growth are expected to be between 3.5% and 5.0% YoY, while the EBIT margin is projected to be between 18% and 19%.
"This growth was well distributed across verticals, geographies, and offerings. Our pipeline is very strong, including Data & AI, Digital Engineering, SAP migration and efficiency led programs," C Vijayakumar, chief executive officer and managing direct at HCLTech, said. "Our GenAI offerings like AI Force and AI Foundry are resonating very well with our clients and should be drivers of efficiency, growth, and innovation over the medium term."
Bookings in the second quarter improved, with new deal Total Contract Value reaching $2,218 million, higher than the $1,960 million recorded in the previous quarter. The employee count stood at 218,621, a decrease of 780 from the last quarter, with the company hiring 2,932 freshers. The attrition rate rose to 12.9%, slightly above the 12.8% recorded in the April-June quarter.
The shares of HCL Tech rose as much as 1.41% during the day to Rs 1,865.50 apiece on the NSE. The stock closed 0.88% higher at Rs 1,855.90 per share. This compares with a 0.66% advance in the benchmark Nifty 50. It has risen 46.06% in the last 12 months and 25.08% year-to-date
