(Image: HCL)
IT services company HCL Technologies on April 22 reported a 25.6 percent sequential decline in consolidated profit at Rs 2,962 crore for the quarter ended March 2021, dented by wage hikes and a one-time bonus of over Rs 700 crore. Profit in the December quarter 2020 was at Rs 3,982 crore.
Revenue from operations during the quarter grew 1.8 percent to Rs 19,642 crore compared to Rs 19,302 crore in the previous quarter, while the revenue in dollar terms rose 3 percent sequentially to $2,696 million thereby, missing CNBC-TV18 poll estimates of 3.6 percent growth on a QoQ basis.
"We have posted a robust Q4FY21 sequential constant currency revenue growth of 2.5 percent," said C Vijayakumar, President & CEO.
Vijayakumar further said the company's revenue in FY21 at $10.175 billion grew by 2.4 percent YoY and a net income growth stood at 13.2 percent YoY (ex-milestone bonus).
HCL Technologies expects revenue in FY22 to grow in double digits in constant currency terms and EBIT margin between 19-21 percent.
The company registered the highest-ever new deal booking during the quarter under review at $3.1 billion (up 48 percent YoY) with an all-time high exit pipeline.
"The booking and pipeline represent a well balanced mix of service lines, geographies and industries. With these solid financials, a passionate employee family and a business model that has consistently proven itself for its resilience and relevance, we step confidently into FY22," said, C Vijayakumar.
HCL said it won 19 new large deals in Q4FY21 across industry verticals, including financial services, life sciences and healthcare, consumer goods and manufacturing.
In FY21, HCL signed a total of 58 new large deals led by industries such as financial services, life sciences and healthcare, telecommunication, manufacturing and technology.
For FY21, new deal total contract value were $7.3 billion, which was 18 percent increase over FY20, said the company.
During FY21, HCL Technologies registered a 17.6 percent growth in profit at Rs 13,011 crore and 6.7 percent growth in revenue at Rs 75,379 crore compared to FY20.
"FY21 has been an unprecedented year by all yardsticks. The best part of the year was the strong operating cash flow generation at US $2,602 million, up 49 percent YoY and free cash flow generation at $2,340 million, up 58 percent YoY," said Prateek Aggarwal, CFO.
IT and business services segment, which contributed 72 percent to total revenue, reported a 4.4 percent sequential growth in constant currency, while engineering and R&D services business, having a 15.1 percent contribution to revenue, grew 0.7 percent QoQ in constant currency.
However, Products & Platforms - the third and last segment - showed a 4.9 percent sequential decline in revenue in constant currency terms.
Geography wise, America's business registered a 2 percent sequential growth in Q4FY21 but declined half a percent in FY21. Europe business grew 0.7 percent QoQ in Q4FY21 and 1.5 percent in FY21 over FY20, while Rest of World business reported 13.3 percent quarter-on-quarter growth and 13.6 percent full year growth.
At the operating level, earnings before interest and tax (EBIT) fell 9.9 percent QoQ to Rs 3,980 crore and margin dipped sharply to 20.4 percent in Q4FY21 from 22.9 percent in Q3FY21, impacted by wage hikes and one-time bonus.
HCL Technologies announced more than Rs 700 crore in one-time bonus to employees to celebrate the $10 billion revenue milestone.
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