HCL Tech Q1 Results: Net profit rises to ₹4,257 crore, revenue up 6.69% YoY — 5 key highlights

HCL Tech Q1 Results: HCL Technologies Limited (HCLTech) on Friday reported robust growth during the first quarter of the financial year 2024-25. The IT major reported a 20.45 per cent increase in net profit to ₹4,257 crore when compared to ₹3,534 crore in the same quarter the previous year.

The company's revenue from operations rose 6.69 per cent to ₹28,057 crore in Q1FY2025, compared to ₹26,296 crore in Q1FY2024. The results exceeded the market's expectations as the company's net profit and revenue rose in the April-June quarter.

“HCLTech delivered an INR revenue growth of 6.7 per cent YoY, healthy given the global environment. EBIT margins came in at 17.1 per cent, steady on a YoY basis. We delivered PAT of ₹4,257 crore for the quarter, which translates to YoY growth of 20.4 per cent. Our cash flow generation remains robust with LTM FCF at ₹21,637 crore, 133 per cent of PAT and 88 per cent of EBITDA," said Prateek Aggarwal, chief financial officer at HCLTech.

"We remain committed to improving our capital efficiency and are pleased to report that Last Twelve Month (LTM) ROIC for the company is up 350 bps YoY at 34.6 per cent, and for the Services business, it is up 476 bps YoY at 42.8 per cent,” he said.

Here are the 5 highlights of HCL Tech's Q1 scorecard:

P&L Account: Profit, Income, and Revenue

HCL Tech reported a 20.45 per cent rise in net profit of ₹4,257 crore in the April to June quarter, compared to ₹3,534 crore in Q1FY24 as the company's focus remained on improving its capital efficiency. The company's income is up 6.8 per cent compared to the March quarter of FY24.

The revenue from operations increased year on year by 6.69 per cent to ₹28,057 crore in the April to June quarter. However, the INR revenue figures are down 1.6 per cent, and the USD revenue figures are down 1.9 per cent quarter on quarter.

The company's pre-tax profit or EBIT has increased 7.5 per cent year over year compared to the Q1FY2024 figures. Yet it fell 4.4 per cent quarter over quarter.

Dividend announcement:

The third-largest IT company announced an interim dividend of ₹12 per share of ₹2 each for FY25. The company has set July 23 as the date for the dividend issue to shareholders.

“The board of directors has declared an interim dividend of ₹12 /- per equity share of ₹2/- each of the Company for the Financial Year 2024-25,” said the company in an exchange filing.

Attrition rate in the last 12 months:

HCL Tech reported an attrition rate of 12.8 per cent for the April to June quarter of FY2025. The company has a total employee strength of 2,19,401 as of June 30, 2024, as per the filing. HCL Tech also added 8,080 employees which involves 1,078 freshers.

Revenues by verticals:

The IT company has seen a 4.1 per cent fall in revenue in its Lifesciences and Healthcare vertical, while the Financial Services and Public Services, which include Energy and Utilities, Travel-Transport-Logistics and Government, have fallen by 1.3 per cent and 3.7 per cent, year on year respectively.

HCL Tech's Telecommunications, Media, Publishing & Entertainment vertical has seen a revenue increase of 69.2 per cent, year on year.

HCL Tech's new deal wins stood at $1.96 billion, as of June 30, 2024.

Guidance for FY2025:

HCL Tech expects revenue growth between 3 and 5 per cent year on year in constant currency (CC) terms. The service revenue growth is expected to be between 3 and 5 per cent year on year, and the EBIT margin to be between 18 and 19 per cent, according to the company's press release.

“We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies,” said C Vijayakumar, the chief executive officer of HCL Technologies Limited.

HCL Tech shares closed 3.20 per cent higher at ₹1,560.60 after Friday's trading session, compared to ₹1,512, the previous close. The results were declared after market hours.