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HCL Technologies Ltd, a leading IT services provider, announced strong financial performance for the second quarter of fiscal year 2025 (Q2 FY25), reporting a significant increase in both profit and revenue. The company's net profit surged by 10.52% to Rs 4,235 crore during the quarter, compared to Rs 3,832 crore in the same period last year. This growth was driven by a robust performance across various business segments and a favorable market environment.
HCLTech's revenue from operations also saw a substantial increase, rising by 8.21% to Rs 28,862 crore in Q2 FY25 from Rs 26,672 crore in the corresponding quarter of the previous year. This growth was fueled by strong demand for IT services globally, particularly in areas such as cloud computing, digital transformation, and cybersecurity.
The company's constant currency (CC) revenue, USD revenue, and INR revenue all witnessed year-on-year (YoY) growth in Q2 FY25, demonstrating a consistent and balanced performance across different currencies. CC revenue grew by 6.2%, USD revenue by 6.8%, and INR revenue by 8.2%. This highlights the company's ability to navigate currency fluctuations and deliver sustainable growth.
In terms of profitability, HCLTech's EBIT (Earnings Before Interest and Taxes) stood at Rs 5,362 crore, representing 18.6% of revenue. This marked a YoY increase of 8.7%, demonstrating the company's strong operational efficiency and ability to generate healthy margins.
Despite the positive financial performance, HCLTech revised its revenue growth forecast for FY25, narrowing it to 3.5%-5% from the previous range of 3%-5%. This suggests a slightly more conservative outlook for the remaining quarters of the fiscal year, possibly due to factors such as global economic uncertainties and potential slowdown in IT spending. However, the company remains optimistic about its long-term growth prospects.
HCLTech continues to invest in its workforce, adding 780 employees to its total headcount, which reached 2,18,621. The company also hired 2,932 freshers during the September 2024 quarter, demonstrating its commitment to nurturing talent and building a strong workforce for the future. The attrition rate also declined to 12.9% from 14.2% in Q2 of the previous year, indicating improvements in employee retention.
The company's new deal-win value stood at $2,218 million, showcasing its strong pipeline of future business opportunities. This underscores HCLTech's competitive position in the IT services market and its ability to attract and secure large-scale projects.
HCLTech's board declared an interim dividend of Rs 12 for FY25, demonstrating its commitment to shareholder value creation. The record date for the dividend has been set for October 22, 2024, and the payment date for the interim dividend will be October 30, 2024.
Roshni Nadar Malhotra, chairperson of HCLTech, expressed her satisfaction with the company's strong performance and emphasized its commitment to sustainable and responsible business growth. She highlighted the importance of upskilling the workforce in next-generation technologies to continue enabling innovation for clients.
The quarterly results were announced after market hours on Monday, October 14, 2024. Earlier in the day, HCLTech shares closed 0.89% higher at Rs 1,856, indicating a positive market reaction to the strong financial performance.
Source: HCLTech Q2 FY25 results: Profit up 11% at Rs 4,235 crore; revenue climbs 8%