HCL Technologies on January 12 reported a 20 percent rise in its consolidated net profit for the quarter ended December 2022 (Q3FY23) at Rs 4,096 crore as against Rs 3,442 crore a year back.
Its consolidated revenue from operations increased 19.61 percent to Rs 26,700 crore against Rs 22,321 crore in the corresponding quarter last year, the company said in an exchange filing.
The numbers beat estimates as according to a poll of brokerages, consolidated revenue was expected to come in Rs 26,026 crore, up 16.6 percent year-on-year (YoY) growth, while consolidated profit after tax (PAT) was estimated to increase 10.6 percent YoY to Rs 3,796 crore.
Revenue in terms of constant currency was up 5 percent sequentially and 13.1 percent year-on-year (YoY).
The company said it won 17 large deals during the quarter - seven in the services segment and 10 in software. The total contract value (TCV) of new deal wins was at $2.35 billion, up 10 percent YoY.
The Board of Directors has also declared an interim dividend of Rs 10 per equity share for FY23. The record date is set as January 20. The Payment date shall be February 1, 2023.
HCL Tech said the EBIT margin during the quarter was at 19.6 percent, up 165 bps sequentially. Net margin stood at 15.3 percent, up 117 bps sequentially.
“We have delivered a strong performance this quarter across all key metrics – revenue growth, margin expansion, booking growth and people metrics," said C Vijayakumar, CEO & Managing Director, HCLTech. "Our strong revenue growth is led by our services business which grew 15.4 percent YoYCC. Our margins at 19.6 percent this quarter, increased 60 basis points YoY."
Providing guidance for FY23, the company said revenue is expected to be between 13.5-14 percent YoY in constant currency. Services revenue is expected to be 16-16.5 percent YoY in constant currency. It said the EBIT margin will likely narrow to 18-18.5 percent.
The last twelve-month attrition rate - a measure of employees leaving the company voluntarily - was at 21.7 percent down from 23.8 percent in the September quarter and higher than 19.8 percent in the December quarter last year.
The company overall added 2,945 employees during the quarter, taking the total headcount to 2,22,270. It also added 5,892 freshers during the quarter.