BackHCL Tech records 8% YoY drop in new deal wins to $2.07 billion in Q4. Details here
In its Q4 results, HCL Tech has reported a consolidated net profit of ₹3,983 crore in Q4FY23. Its net profit increased by 11 per cent from ₹3,593 crore recorded in the quarter ended March in FY22. The tech giant won 13 large deal in the quarter under review
PremiumIn its latest Q4 financial year result, HCL Technologies reported new deal wins worth a total contract value (TCV) of $2.07 billion, which was down by 8 per cent during the quarter ended March in FY22.
The company's deal numbers were driven mainly by the services sector and then the software sector. The company disclosed winning around 13 large deals. Out of the total deals won in the quarter under review, the company won 10 in services sector and 3 in software sector.
On an annual basis, the company bagged 57 large deals in FY23, out of which 32 were finalised in the services sector, whereas, 25 were won in Software sector.
HCL Tech has reported a consolidated net profit of ₹3,983 crore for the quarter that ended March. This is an increase of 11% from ₹3,593 crore clocked in the corresponding period of last year. Revenue from operations rose 18% to ₹26,606 crore for the fourth quarter under review, compared with ₹22,597 crore in the same period last year.
Also Read: HCL Tech attrition continues to lower at 19.5%, net addition of over 3,000 employees in Q4
The company has also done some sound improvement in its client metrics as 19 clients belonged to over 100 million deals as of March 31, 2023, while 46 clients belonged to over 50 million dollar category. The company's client base which belonged to over 20 milion dollar base was expanded to 131.
Also Read: HCL Tech shares trading flat ahead of Q4 earnings; here's what to expect
As of March 31, 2023, HCL Tech's top 5 clients contributed 10.1% to the revenue (LTM) in Q4FY23 which is lower from 10.3% in Q3FY23 and 11.6% in Q4FY22.
Key deals bagged by HCL Tech in Q4FY23
-In FY23, HCL Tech finalised a $500 million worth of deal with Fortune 500 financial services corporation. The US-based company is the new entrant in the client list of the company.
-Other than Fortune 500 financial services corporation, HCL Tech also locked in deals with Fortune 500 agriscience company and Fortune 500 semiconductor company, Fortune 500 retailer.
Also Read: HCL Tech gives FY24 guidance, expects CC revenue growth between 6-8%, EBIT margins seen at 18-19%
-Other than that, the company also finalised deals with companies located in Australia, Europe, etc.
“We have delivered a stellar performance in FY23, crossing ₹1,00,000 crores of revenue powered by Industry leading services growth of 15.8 per cent in constant currency. Our net new bookings for FY2023 grew 6.6 per cent. Our pipeline is near an all-time high, which reflects our differentiated business mix and strong client demand for our offerings. We have added 3,674 employees this quarter and overall employee strength has now grown beyond 2,25,000. All these set us well in FY25 for a healthy revenue growth in the 6-8 per cent range with operating margins in 18-19 per cent range," said C Vijaykumar, CEO and MD of HCL Tech.
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