HCL Tech Q2 Profit Rises 7.4%; Shares Fall Post Results

On Friday, HCL Technologies Ltd reported a 7.4 percent increase in its net profit to Rs 3,142 crore for the September ended quarter from Rs 2,925 crore in the previous quarter. When compared to the September 2019 quarter, its net profit rose 18.5 percent from Rs 2,651 crore.

The company also announced an interim dividend of Rs 4 per share for the financial year 2020-21. The record date for the payment of the dividend is 24 October and payment data will be 9 November.

The IT major's revenue grew 6.1 percent 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, the company's revenue grew at 4.5 percent in constant currency; higher than its estimate of 1.5-2.5 percent sequential rise.

Shares of HCL Tech slipped 3.8 percent to as much as Rs 820.6 after the results were announced.

During the quarter, the company signed 15 transformational deals. As of 30 September 2020, HCL had 1.53 lakh employees, while attrition for IT services (on a last 12-month basis) was at 12.2 percent.

HCL Technologies has maintained its revenue growth guidance of an average of 1.5-2.5 percent 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 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