HCL Tech Q2 Net Profit Up by 18.5% at Rs 3,142 Crore; Says Select Staff to Get Salary Hike from Oct

IT firm HCL Technologies on Friday posted 18.5 per cent rise in September quarter net profit at Rs 3,142 crore. The IT major had registered a net profit of Rs 2,651 crore in the July-September 2019 quarter (as per US GAAP), HCL Technologies said in a regulatory filing.

Its revenue grew 6.1 per cent to Rs 18,594 crore in the quarter under review, from Rs 17,528 crore in the corresponding quarter last year. On a sequential basis, net profit was 7.4 per cent higher from Rs 2,925 crore, while top line was higher by 4.2 per cent from Rs 17,841 crore in June 2020 quarter.

In the second quarter, HCL Technologies recorded revenue growth at 4.5 per cent quarter-on-quarter in constant currency – higher than its estimate of 1.5-2.5 per cent sequential rise. HCL Technologies has maintained its revenue growth guidance of an average of 1.5-2.5 per cent increase quarter-on-quarter in constant currency for the third and fourth quarter.

“We have delivered a stellar Q2 performance with a sequential revenue growth of 4.5 per cent in constant currency and 21.6 per cent EBIT margin,” HCL Technologies President and CEO C Vijayakumar said. This growth momentum was driven by continued leadership in Digital Transformation and Cloud businesses and a strong stability in the Products and Platforms segment, all of which continue to open diverse growth avenues for the company, he added.

“Our investments over the last few years in next-gen technologies have held us in good stead during these difficult times and position us strongly to leverage the emerging market opportunities,” Vijayakumar said.

Vijayakumar added that HCL Tech will hike salaries for select staff from October and from January for others.

The Board of Directors has declared an interim dividend of Rs 4 per equity share for the financial year 2020-21.

During the quarter, HCL signed 15 transformational deals. At the end of September 2020 quarter, HCL had 1,53,085 employees, while attrition for IT services (on a last 12 month basis) was at 12.2 per cent.

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