HCL Tech Q2 Results: Beats Estimates, Consolidated PAT Rises 11% YoY To Rs 4,235 Crore; Raised FY25 Guidance

HCL Technologies, one of the tech giants of India, has reported an upbeat Q2FY25 earnings. HCL beats estimates across all fronts, with Q2FY25 consolidated PAT coming at Rs 4,235 crore, registering a growth of 10.51% year-on-year. Consolidated revenue jumped by 8.21% year-on-year to Rs 28,862 crore, driven by key deal wins across verticals. HCL Tech also raised the lower end of its FY25 revenue guidance, which is a key boosting factor.

In Q2FY25, while reporting double-digit growth in the bottom-line front YoY, HCL Tech's profitability was fractionally down by 0.5% from PAT of Rs 4,257 crore which was witnessed in Q1FY25.

However, revenue was marginally up from Rs 28,057 crore revenue in Q1 of the current fiscal. In Q2FY24, the revenue of the company stood at Rs 26,672 crore.

In constant currency, HCL Tech's Q2 revenue growth stood at 1.6% QoQ and 6.2% YoY. In dollar terms, HCL reported revenue of $3,445 million, rising by 2.4% QoQ & up 6.8% YoY.

In segment-wise the company's Services Revenue is up 1.6% QoQ & up 5.9% YoY CC. While Digital Revenue was up 7.8% YoY CC; contributes 38.5% of Services.

The company's new deal wins were at $2,218 million.

Furthermore, EBITDA surged to Rs 6,369 crore in Q2FY25, compared to EBITDA of Rs 5,944 crore in Q2FY24 and Rs 5,793 crore in Q1FY25.

Talking about the performance, C Vijayakumar, CEO & Managing Director, at HCLTech said, "We delivered a strong quarter with revenue growing 1.6% QoQ in constant currency and EBIT coming in at 18.6%. This growth was well distributed across verticals, geographies, and offerings. HCL Software has delivered a stellar performance of 9.4% YoY this quarter and 6.4% growth in H1 FY25 in constant currency, demonstrating the increasing relevance of our products for the digital economy."

Vijayakumar added, "Our pipeline is very strong, including Data & AI, Digital Engineering, SAP migration and efficiency led programs. Our GenAI offerings like AI Force and AI Foundry are resonating very well with our clients and should be drivers of efficiency, growth, and innovation over the medium term."

Looking ahead, Roshni Nadar Malhotra, Chairperson at HCLTech said, "We remain committed to delivering business growth in a sustainable and responsible way. We have sharpened our focus on upskilling our people in next-generation technologies to continue enabling the art of the possible for our clients. Our global community engagement footprint continues to grow."

HCL Tech raised its lower-end revenue guidance for FY25 to 3.5% from the earlier 3%, while retaining the upper-end target of 5% YoY growth in constant currency. Further, the company's Services Revenue growth is expected to be between 3.5% - 5.0% YoY in CC. Lastly, EBIT margin is factored to be between 18.0% - 19.0%.

After the market hours of the October 14th session, HCL Tech's share price ended at Rs 1856 apiece, up by 0.9% on BSE, with a market cap of Rs 5,03,656.24 crore. Prior to the earnings report, HCL touched a new 52-week high of Rs 1,864 apiece on BSE during the trading session.