HCL Tech Q1 Results: Shiv Nadar's IT Company Outperforms, Consolidated PAT Jumps 20.5% YoY To Rs 4257 Crore

Shiv Nadar-backed HCL Technologies has done it again, outperformed street estimates and also peers like TCS in the first quarter of FY25. The company posted a consolidated net profit of Rs 4,257 crore in Q1FY25, registering a growth of 6.8% QoQ and 20.5% YoY. HCL also recorded better-than-expected performance in revenue and EBIT terms as well.

HCL Tech's net profit stood at Rs 3,986 crore in Q4FY24 and Rs 3,534 crore in Q1FY24.

However, on the top-line front, HCL's performance was mixed. Consolidated revenue from operations stood at Rs 28,057 crore, down by 1.6% QoQ but up by 6.7% YoY. While constant currency revenue also dipped 1.6% QoQ but surged 5.6% YoY.

Also, HCL's revenue in dollar terms was at $3,364 million, down by 1.9% QoQ but up 5.1% YoY.

Notably, HCL Tech Services Revenue was down 1.9% QoQ & up 5.8% YoY CC in the quarter under review. Also, Digital Revenue was up p 6.0% YoY CC; contributing 37.4% of Services.

A similar trend was witnessed in EBIT which came at Rs 4,795 crore, (17.1% of revenue), down 4.4% QoQ & up 7.5% YoY.

The company's TCV (New Deal wins) stood at $1,960 million.

C Vijayakumar, CEO & Managing Director HCLTech said, "We are pleased to report another quarter of industry-leading performance with 5.6 % YoY revenue growth on a constant currency basis. Our Q1 Revenue and EBIT performance was slightly better than our expectations. "

He added, "We clocked in $2B TCV of new business Bookings. We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies."

Meanwhile, Roshni Nadar Malhotra, Chairperson, HCLTech said, "With our future-ready portfolio, we are well placed to tap emerging opportunities led by GenAI. We remain committed to doing business sustainably and responsibly as we continue to supercharge progress for our clients."

For FY25, HCL Tech estimates constant currency revenue growth of 3.0% - 5.0% YoY. While services revenue growth is expected to be between 3.0% - 5.0% YoY in CC. Lastly, EBIT margin is to be between 18.0% - 19.0%.