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HCL Technologies (HCLTech), a leading global technology company, announced a strong performance in its second quarter (Q2) of fiscal year 2025, reporting an 11% increase in net profit to ₹4,235 crore compared to ₹3,832 crore in the same period last year. This positive growth reflects the company's sustained momentum in the technology sector, driven by robust demand for its services across various verticals and geographies.
The company's revenue from operations also saw a significant rise, increasing by 8.2% to ₹28,862 crore from ₹26,672 crore in the previous year. This growth in revenue is attributed to the strong demand for HCLTech's digital transformation solutions, particularly in areas like cloud computing, data analytics, and cybersecurity. The company also reported new deal wins worth $2,218 million, demonstrating its ability to secure lucrative contracts and expand its global footprint.
While HCLTech's net profit witnessed a marginal decline of 0.5% on a sequential basis, its net revenue grew by 2.9%. This indicates that the company is navigating the current macroeconomic environment with a healthy balance between revenue growth and profitability. Notably, HCLTech revised its revenue growth forecast for fiscal year 2025 upwards to 3.5-5% from the earlier range of 3-5%, highlighting its optimism about the future.
HCLTech's CEO and MD, C. Vijayakumar, expressed satisfaction with the company's Q2 performance, emphasizing the well-distributed growth across verticals, geographies, and offerings. He highlighted the strong pipeline of opportunities in areas such as data and artificial intelligence (AI), digital engineering, SAP migration, and efficiency-led programs. HCLTech's GenAI offerings, including AI Force and AI Foundry, are resonating with clients, promising to drive efficiency, growth, and innovation in the medium term.
Shiv Walia, Chief Financial Officer of HCLTech, added that the company delivered robust financial results with a strong constant currency (CC) revenue growth of 6.2% year-on-year, a figure that surpasses industry averages. He further emphasized that the growth was accompanied by improved profitability, as reflected in the EBIT margins rising to 18.6% in Q2, representing a sequential increase of 149 basis points.
The company's commitment to its employees is evident in the announced average pay hike of 7% for all eligible employees who have completed a year of service. Top performers are set to receive double-digit increases ranging from 12% to 15%, demonstrating HCLTech's recognition of talent and performance. The company also confirmed its continued investment in fresh talent by hiring specialized skill sets.
HCLTech's chairperson, Roshni Nadar Malhotra, highlighted the company's focus on upskilling its workforce in next-generation technologies to better serve its clients. The company hired 2,932 freshers in Q2, bringing its total headcount to 2,18,621 as of September 30, 2024. Attrition levels also dropped to 12.9% from 14.2% a year earlier, reflecting HCLTech's efforts to retain and engage its employees.
Overall, HCLTech's Q2 results demonstrate the company's strong financial performance and its commitment to growth and innovation in the technology sector. The company's strategic investments in emerging technologies, coupled with its focus on talent and employee development, position it well for continued success in the years to come.
Source: HCLTech reports 11% jump in Q2 net profit to ₹4,235 crore