HCL Tech Q2 results: Net profit at Rs 3,142 crore; firm announces interim dividend of Rs 4 per share

NEW DELHI: IT major HCL Technologies on Friday posted a 18.5 per cent year-on-year (YoY) rise in net profit at Rs 3,142 crore for the September quarter compared with Rs 2,651 crore profit in the corresponding quarter of last year.

Analysts at an ET NOW poll had estimated the profit figure of Rs 3,033 crore.

Revenue for the quarter rose 6.1 per cent YoY to Rs 18,594 crore compared with Rs 17,528 crore sales the company reported in the year-ago quarter.

Sequentially, profit was up 7.4 per cent over Rs 2,925 crore in June quarter, while sales was up 4.2 per cent over Rs 17,841 crore in June quarter.

The management has maintained their guidance of a 1.5-2.5 per cent growth in revenue in constant currency terms for the rest of the quarters in the financial year.

"The management has maintained its revenue guidance. While September quarter revenue was in line with our expectations gross margins came in ahead of expectations. Despite currency headwinds, Ebitda and net profits for the quarter too were in line with our expectations. We continue to remain positive on HCL Technologies post the Q2 numbers," said Jyoti Roy- DVP- Equity Strategist at Angel Broking.

Dollar revenue for the quarter came in at $2,507 million, which beat ET NOW poll estimate of $2,485 million.

The IT firm expects third and fourth quarter growth to remain in 1.5-2.5 per cent range in constant currency terms. For September quarter, revenue was up 4.5 per cent sequentially in constant currency terms. Ebit for FY21 is seen in 20-21 per cent range.

"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.

The IT major said it won 15 transformational deals in September quarter. The deal wins during the quarter were secured from life sciences, healthcare, public services (energy and utilities) and manufacturing.

C Vijayakumar, President & CEO, HCL Technologies said that the company would hike salaries effective October 1 for up to E3 level employees and January1 for E4 and above level employees. "This is just a one quarter shift from the regular annual cycle," he said.

Gross cash stood at $2,246 million at the end of the quarter. Net cash stood at $1,826 million.

The company board announced an interim dividend of Rs 4 per share.