HCL Tech Q4 net flat at Rs 3,986 crore

NEW DELHI: HCL Technologies on Friday posted a flat year-on-year growth in net profit for the March quarter. However, it reported an 8.4 per cent decline in net profit sequentially as employee cost rose amid tightening IT spends around the world.

Its consolidated net profit for the Q4 of the previous fiscal was Rs 3,986 crore compared with Rs 3,983 crore in FY23. Sequentially, the net profit declined 8.4 per cent from Rs 4,350 crore in the October-December period, according to the company’s filing and statement.

The company gave a guidance of 3-5 per cent growth in revenue in constant currency terms for FY25 and an EBIT margin of 18-19 per cent. EBIT margin (per-tax profit as percentage of revenue) declined to 17.6 per cent in the January-March period from 19.8 per cent in the previous quarter and 18.1 per cent a year ago.

Employee cost rose 11.5 per cent during the quarter while the attrition rate at 12.4 per cent was lower than 19.5 per cent in the fourth quarter of last year. For the March quarter, HCLTech’s revenue from operations stood at Rs 28,499 crore, a 7.11 per cent rise from Rs 26,606 crore last year.

For the entire FY24, HCL Tech reported a 5.73 per cent rise in net profit to Rs 15,702 crore. The revenue during FY24 was marked at Rs 109,913 crore, up 8.33 per cent over the previous fiscal. “...we have translated this growth into even higher value creation for our shareholders with our OCF coming at $2,711 million, up 21.6 per cent YoY and FCF at $2,584 million, up 27.7 per cent YoY.

“As we look ahead, global enterprise technology spend will only grow with adoption of AI,” HCLTech CEO-MD C Vijayakumar said. The company’s total headcount stood at 227,481 during the quarter under review.

Total headcount stood at 227,481 during the quarter under review