HCL Tech Quarterly Results: Q2 FY2023 Earnings

HCL Technologies reported an increase in consolidated net profit of 7.05 percent year over year (YoY) to Rs 3,489 crore from Rs 3,259 crore in the same quarter last year on Wednesday.

In comparison to the same quarter last year, HCL Technologies' consolidated net profit increased by 7.05% year over year (YoY) to Rs 3,489 crore. In comparison to the same quarter last year, the consolidated revenue increased 19.5% YoY to Rs 24,686 crore from Rs 20,655 crore. Dollar sales during the quarter totaled $3,082 million, an increase of 10.4% year over year (up 1.9 percent QoQ). Constant currency (CC) terms saw a 15.8% YoY increase in revenue (3.8 percent QoQ).

The Ebit margin for the quarter was 18%, compared to 17% in the June quarter and 19% in the prior quarter.

In FY23, HCL Tech has projected CC revenue increase in the Service segment of 16–17% YoY. Overall, it sees CC revenue for the IT company increase by 13.5–14.5% YoY in FY23. EBIT margin forecast is now between 18 and 19%.

The Noida-based company reported securing 11 sizable deals in the last three months, including eight in the services and three in the products sectors. Overall, overall contract value bookings (new deal wins) increased by 6% YoY to $2,384 million (16 percent QoQ).

C Vijayakumar, CEO & Managing Director, said: "Our bookings and pipeline continue to be very strong, that augurs well for our future growth. These reflect our constant and continuing efforts to supercharge outcomes for all our stakeholders."

A 10-rupee interim dividend was declared by the company board. Prateek Aggarwal, the chief financial officer, stated that despite the impact of salary increases, his company significantly increased EBIT margin sequentially, driven by operating leverage and savings.