HCLTech shares tumble 10% on no big positive announcements in Q3 FY25 earnings; check key numbers

The numbers were in line with Street estimates; however, no big positive surprises or announcements, as expected by the Street, dented sentiment.

Revenue

In rupee terms, the revenue for the quarter came in at ₹29,890 crore, up 3.6% QoQ and 5.1% YoY. In constant currency (CC) terms, revenue rose 3.8% QoQ and 4.1% YoY.

In US dollar terms, revenue increased by 2.5% QoQ and 3.5% YoY to $3,533 million.

Profitability & Return Metrics

EBIT, or earnings before interest and taxes, came in at ₹5,821 crore (19.5% of revenue), up 8.6% QoQ and 3.7% YoY.

Return on invested capital (on an LTM basis)—Company at 36.6%, up 385 bps YoY; Services at 44.7%, up 455 bps YoY.

The company reported a 5.54% growth in consolidated net profit to ₹4,591 crore. On a sequential basis, profit rose 8.4%.

The margin, topline, and bottom line numbers were mostly in line with analysts' estimates.

Dividend Update

The company declared a fourth interim dividend of ₹18/- per equity share of ₹2 each of the company for the financial year 2024-25. This includes a special dividend of ₹6 per share to celebrate 25 years of the company’s public listing.

The record date for the payment of the aforesaid interim dividend shall be January 17, 2025, and the payment date of the said interim dividend shall be January 24, 2025.

HCLTech said this represents the 88th consecutive quarter of dividend payout.

New deal wins

TCV (New Deal wins) stood at $2,095 million.

Commenting on the Q3 results, C Vijayakumar, CEO & Managing Director, HCLTech, 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 transformative future, with AI empowering businesses and employees. We continue to see growing demand for our AI-led propositions across services and software offerings.”

FY25 Guidance

Total Headcount

The total people count stood at 220,755. Net addition during the quarter was 2,134 staff. HCLTech further said it added 2,014 freshers during Q3. LTM attrition was 13.2% (up from 12.8% in Q3 of last year).

Other details

HCLTech Services CC Revenue up 2.2% QoQ & up 4.9% YoY

Digital revenue is up 6.3% YoY CC and contributes 38.5% of services.

HCLSoftware revenue down 2.1% YoY CC

HCLSoftware ARR at $1.02B, down 0.6% YoY CC

Roshni Nadar Malhotra, Chairperson, HCLTech, said, “HCLTech is well positioned as AI-led transformation brings new growth opportunities. We continue to deliver industry-leading performance with governance and sustainability at the core."

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