HCLTech Q2 Results Highlights: HCL Technologies net profit declines 0.5% QoQ to ₹4,235 crore, dividend declared

• Revenue: ₹28,862 crore, up 2.9% QoQ and up 8.2% YoY
• USD Revenue: $3,445 million, up 2.4% QoQ and up 6.8% YoY
• Net profit: ₹4,235 crore, down 0.5% QoQ and up 10.5% YoY
• EBIT: ₹5,362 crore, up 11.8% QoQ and up 8.7% YoY
• Dividend: ₹12/- per share, 87th consecutive quarter of dividend pay-out

• Company Revenue growth expected to be between 3.5% and 5.0% YoY in constant currency
• Services Revenue growth expected to be between 3.5% - 5.0% YoY in constant currency
• EBIT margin to be between 18% and 19%

Roshni Nadar Malhotra, Chairperson of HCLTech, said, "We remain committed to delivering business growth in a sustainable and responsible way. We have sharpened our focus on upskilling our people in next-generation technologies to continue enabling the art of the possible for our clients. Our global community engagement footprint continues to grow."

C Vijayakumar, CEO & Managing Director of HCLTech, said, "We delivered a strong quarter with revenue growing 1.6% QoQ in constant currency and EBIT coming in at 18.6%. This growth was well distributed across verticals, geographies, and offerings. HCL Software has delivered a stellar performance of 9.4% YoY this quarter and 6.4% growth in H1 FY25 in constant currency, demonstrating the increasing relevance of our products for the digital economy. Our pipeline is very strong, including Data & AI, Digital Engineering, SAP migration and efficiency led programs. 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."

Shiv Walia, Chief Financial Officer of HCLTech, said, "HCLTech has delivered robust financial results with constant currency (CC) revenue growth at an industry leading 6.2% YoY. INR revenue reached ₹28,862 Crores, marking a sequential growth of 2.9% and a YoY growth of 8.2%. This revenue growth has come with an improved profitability. Our EBIT margins in Q2 rose to 18.6%, up 149 bps sequentially. LTM Return on Invested Capital (ROIC) stands at solid 35.7% at company level and 43.5% at Services, an expansion of 353 bps YoY and 403 bps YoY respectively. Our dedicated efforts to improve our cash conversion continue to yield best in class results, with LTM FCF/NI coming in at 119%."

• Total people count at 218,621; Net addition: (780)
• Added 2,932 freshers
• LTM Attrition at 12.9%*, (down from 14.2% in Q2 of last year)

The Record date is fixed as October 22, 2024, while the payment date of the said interim dividend will be October 30, 2024.

Revenue from operations increased by 6.70% YoY to ₹28,057 crore in Q1 FY25 against ₹26,296 crore in the year-ago period.

The company's net profit rose 20.4% to ₹4,257 crore crore in the April-June quarter of FY25, compared to ₹3,534 crore in the year-ago period.

• Current share price: ₹1,854.9 (+0.83%)
• Previous close: ₹1,839.65
• Open: ₹1,846
• High: ₹1,857.8
• Low: ₹1,832.4

• Al & generative AI
• Cloud
• Software
• Application Management
• Automation
• EdTech
• Business Process Operations
• Internet of Things (IoTs)
• Commercial Apps/SaaS
• Market Services
• Cybersecurity
• Networks
• Data and AI
• Product Engineering
• Supply Chain

• Traded volume (Lakhs): 5.17
• Traded value: ₹95.27 crore
• Total market capitalisation: ₹4,99,585.74 crore
• Free float market cap: ₹1,94,117.26 crore

• Current share price: ₹1,840.15 (+0.03%)
• Previous close: ₹1,839.65
• Open: ₹1,846
• High: ₹1,854
• Low: ₹1,832.4

According to experts, HCLTech is expected to post a single-digit growth in the July-September quarter of 2024-25 due to lower contribution from the BFSI sector. The revenue growth is likely to be in range of 7.1% to 9.2% (₹26,672 crore to ₹28,710 crore) on year-on-year (YoY) basis.

The net profit is likely to grow in range between 5% to 15% (₹3,832 crore and ₹4,097 crore), analysts said.