HCLTech shares hit record high on Q2 earnings, increase in revenue guidance

The company reported a 10.51% rise in consolidated net profit to ₹4,235 crore during the quarter under review.

It had reported a net profit of ₹3,832 crore in the year-ago period.

Revenue came in at ₹28,862 crore during the reporting quarter, 8.21% higher than ₹26,672 crore in the year-ago period.

HCLTech CEO & Managing Director C Vijayakumar said that the company's pipeline is very strong, including data & AI, digital engineering, SAP migration, and efficiency-led programmes.

"Revenue growth has come with improved profitability. Our EBIT margins in Q2 rose to 18.6%, up 149 bps sequentially. LTM Return on Invested Capital (ROIC) stands at a solid 35.7% at company level and 43.5% at services, an expansion of 353 bps YoY and 403 bps YoY, respectively," said HCLTech CFO Shiv Walia.

The company's board has declared an interim dividend of ₹12 per equity share of ₹2 each for 2024-25.

HCLTech also increased the lower band of its revenue growth guidance to 3.5-5% YoY in constant currency, against a guidance of 3-5% in the first quarter.

HCLTech Salary Hike

The IT services company said it will implement a 7% salary hike starting October. Top performers will receive raises of up to 12-15%. The company expects the wage hikes to have a minimal impact on its operating margins in the December quarter, said the company’s Chief People Officer, Ramachandran Sundararajan.

“We have decided to go ahead with the increase. It will be similar to what we did last year, which means the increases will be effective October, i.e., this month,” Sundararajan said during the company’s Q2 earnings press conference.