IT company HCL Technologies on Thursday reported its fiscal fourth quarter net profit rose 11 per cent on-year to Rs 3,983 crore, as against Rs 3,593 crore in the same quarter last year, surpassing analyst estimates. HCL Tech reported its fourth quarter revenue of Rs 26,606, up 18 per cent from Rs 22,597 crore during the same quarter in the previous year. A CNBCTV18 poll estimated HCL Tech January-March net profit to be at Rs 3,890 crore, and revenue at Rs 26,737 crore.
HCL Tech also declared another interim dividend of Rs 18 per share, taking the total dividend for the financial year 2023-24 to Rs 48 per share. “The Record date of April 28, 2023 fixed for the payment of the aforesaid interim dividend has been confirmed by the Board of Directors. The payment date of the said interim dividend shall be May 9, 2023,” HCL Tech said in a regulatory filing.
In the March quarter, HCL Tech won 13 large deals – 10 in services and 3 in software. The total contract value of the new deals was worth $2 billion, which is down 8 per cent on-year. HCL Tech said the company has a robust pipeline, bookings and strong client demand. “All these set up well in FY24 for a healthy revenue growth in the 6-8% range with operating margins in the 18-19 per cent range,” said C Vijayakumar, CEO & Managing Director, HCL Tech.
Which segments performed better for HCL Tech?
While HCL Tech posted a revenue of Rs 26,606 crore in the fourth quarter, how did the various business verticals perform for the IT company? HCL Tech’s biggest chunk of revenue came from IT and business services which accounted for a total of Rs 19,632 crore. The engineering and R&D services recorded a revenue of Rs 4,274 crore in the quarter ended March 31, 2023, and HCL software’s revenue accounted for Rs 2,700 crore.
Hirings and attrition at HCL Tech
HCL Tech’s headcount as of March 31, 2023 stands at 2,25,944 and the net addition of people in the fourth quarter was 3,674 employees. The LTM attrition rate for the quarter stood at 19.5 per cent.