HCL Tech Q3 Results Highlights: IT firm announces ₹18 per share dividend as net profit jump 5.5% to ₹4,591 crore

HCL Tech Q3 Results Highlights: IT major reported a 5.5% YoY increase in its Q3 net profit attributable to owners to ₹4,591 crore. Meanwhile, its revenue from operations rose 5.1% year-on-year (YoY) to ₹29,890 crore.

C Vijayakumar, CEO & Managing Director, said, “HCLTech delivers another quarter of solid growth at 3.8% QoQ in constant currency and EBIT at 19.5%. I am pleased that this growth is powered by broad-based performance across business lines as our clients across verticals and geos reaffirm their confidence in our Digital and AI offerings. Our new deal bookings were healthy during the quarter at $2.1B with wins across services and software. We are positioning ourselves for a future that is transformative, with AI empowering businesses and employees. We continue to see growing demand for our AI led propositions across services and software offerings.”

Shiv Walia, Chief Financial Officer, said, "HCL Tech delivered yet another strong quarter with INR revenue of ₹29,890 Crores (up 3.6% QoQ and 5.1% YoY). Our razor-sharp focus on achieving topline growth with healthy margins is reflected in our highest-ever EBIT of ₹5,821 crores and Net Profit of ₹4,591 crores this quarter. Q3 EBIT margins came in at 19.5% (up 93 bps QoQ). LTM Return on Invested Capital (ROIC) continues its growth trajectory and stands at 36.6% for the company (up 385 bps YoY), and at 44.7% for Services (up 455 bps YoY). Cash conversion (on an LTM basis) continues to outpace our 5-year FCF/NI average of 126%, with FCF/NI of 134% this quarter. This has further strengthened our Balance Sheet, helping us end the quarter with our highest ever cash balance of ₹27,707 crores.”

• Earnings before interest and taxes (EBIT) at ₹5,821 crores (19.5% of revenue), up 8.6% QoQ and up 3.7% YoY.
• Q3 EBIT margins stood at 19.5%, up 93 basis points compared to the previous quarter, but down 25 basis points on a yearly basis.
• New deal wins during the quarter stood at $2,095 million.
• Attrition during the last twelve months (LTM) stood at 13.2%, which is higher than the 12.8% rate in the same quarter last year.

• Revenue growth is expected to be between 4.5% - 5.0% YoY in constant currency (CC)
• Services sector revenue growth is expected to be between 4.5% - 5.0% YoY in CC
• EBIT margin to be between 18.0% – 19.0%

The Board of Directors of HCL Tech have declared the fourth interim dividend of ₹18 per share, including a special dividend of ₹6 per equity share to celebrate 25 years of the company’s public listing. This represents the 88th consecutive quarter of dividend pay-out.

The record date for the payment has been set on January 17, 2025 while the payment date is January 24, 2025.

• Shiv Nadar, Founder
• Roshni Nadar Malhotra, Chairperson
• C Vijayakumar, Chief Executive Officer and Managing Director
• Shikhar Malhotra, Director
• Thomas Sieber, Independent Director
• Nishi Vasudeva, Independent Director
• Deepak Kapoor, Independent Director
• Simon John England, Independent Director
• Vanitha Narayanan, Independent Director
• Bhavani Balasubramanian, Independent Director
• Lee Fang Chew, Independent Director

• Traded volume: 19.42 lakh
• Traded value: ₹386.73 crore
• Total market cap: ₹5,41,457.60 crore

• Current price: ₹1,989.30 (-0.29%)
• Open: ₹1,994.90
• High: 2,000.40
• Low: ₹1,980
• Previous close: ₹1,995.10

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

According to analysts, HCL Tech will likely post a single-digit revenue growth in the October-December quarter of 2024-25. The revenue growth is expected to be around 4.4% to ₹30,135 crore. In the previous quarter, the revenue was ₹28,862 crore.

The net profit is likely to rise 8.5% to ₹4,596 crore, up from ₹4,235 crore in Q2 FY25.