HCL Tech Q2 results: Net profit rises 4% to Rs 3,259 cr, revenue up 11%

IT services firm HCL Technologies reported second quarter revenue at Rs 20,655 crore up 2.9 per cent sequentially and 11.1 per cent on a year-on-year basis. Net Income for the quarter ended September 30 was Rs 3,265 crore, a rise of 1.6 per cent quarter-on-quarter and 3.9 per cent annually.

The company reported 4% jump in consolidated net profit at Rs 3,259 crore for the quarter ending September 30, 2021 as against Rs 3,143 crore a year ago.

The firm continues to expect FY22 revenue to grow in double digits in constant currency, while EBIT margin is expected to be between 19 and 21 per cent for FY22.

The IT firm’s Board approved a payout policy that entails investor payouts of not less than 75 per cent of net income cumulatively over five years- FY 22 to FY26, said Prateek Aggarwal, Chief Financial Officer, HCL Technologies Ltd, in a statement.

The total contract value of new deal wins in Q2 rose sequentially to $2.245 billion, a 38 per cent growth from the previous year, enabled by 14 net new large deal wins. In Q1, the TCV was $1.67 billion.

“We have delivered a healthy performance this quarter marked by strong growth across our services portfolio led by our Digital Business, Engineering and Cloud Services. We had impressive client additions across all categories, reflecting strong demand and relevance of our offerings across all our client groups. We signed 14 large new deals which helped us to record net new booking of $2.3 bilion, a growth of 38 per cent Y-o-Y. Our net employee addition hit an all time high of 11,135 this quarter. Our robust pipeline and continued strong employee ramp up augurs well for our business momentum going forward.”, said C Vijayakumar, Chief Executive Officer & Managing Director, HCL Technologies Ltd, in a statement.

The Noida-based firm added one $100 million client during the quarter, 12 over $50 million clients, 18 clients over $20 million and over $10 million clients up by 18, and 12 clients worth over $5 million.

Hiring continued with net addition of 11,135 people during the quarter, the highest in the last 24 quarters. Total headcount at HCL Technologies is now at 187,634.

“The pandemic accelerated the need for building together a sustainable and scalable future and investing in purpose-driven growth. The lessons learned have sharpened our ability to adapt and to innovate and deepened our commitment to bringing positive change through technology. We believe in ‘The New Essential’ – the confluence of technology and human ingenuity – as the path forward. In the months ahead, we will further accelerate our actions and investments in emerging technologies, people and ESG to build a stronger and better future together,” said Roshni Nadar Malhotra, Chairperson, HCL Technologies Ltd, in a statement.

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