HCL Tech Q3 net profit rises 19% to ₹3,489 crore; declares interim dividend of ₹10

IT services major HCL Technologies (HCL Tech) on Thursday reported 19% rise in consolidated net profit at ₹4,096 crore for the December quarter (Q3FY23) when compared with the same period last year. It was ₹3,442 crore in the same quarter (Q3FY22) of last year.

The company reported a higher-than-expected profit for the December quarter helped by strong deal wins, but lowered its full-year revenue view citing seasonal challenges in the fourth quarter.

On a sequential basis, the profit after tax (PAT) rose 17% from ₹3,489 crore in the previous September quarter.

The Noida-based company's revenue from operations, meanwhile, rose 19.5% to ₹26,700 crore as against ₹22,331 crore in the year-ago period.

The company's board has approved an interim dividend of ₹10 per equity share for FY23. The record date is set as 20 January, 2023. The payment for the said interim dividend shall be made on 1 February, 2023.

HCL Tech has narrowed its revenue and margin guidance band. FY23 revenue growth now seen at 13.5-14% in constant currency and EBIT margin now seen at 18-18.5%.

In constant currency terms, revenue in Q3FY23 rose 5% sequentially and 13.1% YoY. The services business revenue rose 2.2% sequentially and 15.4% YoY in constant currency terms.

HCL Tech said operating margin, calculated as earnings before interest, tax (EBIT), further improved during the quarter. The profitability improved 165 basis points sequentially to 19.6%.

The IT services major has added 5,892 freshers during the quarter ending December 30, 2022 (Q3FY23). The company's total employees count stood at 222,270 in the quarter under review.

For the quarter, HCL Tech's attrition (LTM) was at 21.7%, lower than the same September quarter, where it stood at 23.8%.

"We are committed to bringing together the best of technology and our people to supercharge progress for clients in their digital transformation journeys. And we continue to execute our strategy by aligning to the highest standards of governance and transparency," said HCL Tech Chairperson Roshni Nadar Malhotra.

The firm said it won 17 large deals during the December quarter -- seven in services segment and 10 in software. The total contract value of new deal wins was at $2.35 billion, up 10% YoY.

On Thursday, HCL Tech scrip closed 1.68% higher at ₹1,072.50 apiece on the NSE. The IT stock has declined more than 21% in a year's period.