HCL Tech’s Q3 Financial Highlights: HCL Technologies, the third-largest IT services company in India, exhibited robust performance with a 13.5% sequential surge in its consolidated net profit (attributable to shareholders), reaching ₹4,350 crore in Q3 FY24, compared to ₹3,832 crore in Q2 FY24. The quarter witnessed a noteworthy 6.65% QoQ growth in revenue, totaling ₹28,446 crore.
Surpassing market expectations, the IT giant delivered a formidable Profit After Tax (PAT) of ₹4,350 crore in the October-December quarter of the current financial year, exceeding the anticipated 11% rise. Similarly, the company’s revenue growth outpaced market projections.
In a year-on-year comparison, the consolidated net profit recorded a 6.2% increase from ₹4,096 crore in the corresponding period last year. Additionally, the consolidated revenue from operations exhibited a 6.5% YoY upswing, reaching ₹26,700 crore in Q3 FY23.
In Constant Currency (CC) terms, HCL Tech reported a 6% sequential and 4.3% annual increase in revenue, amounting to $3,415 million. The operating margin experienced a significant boost, rising by 19.8% to ₹5,615 crore, marking a 140 basis points improvement QoQ. The net income also saw a substantial uptick, surging by 13.8% QoQ and 7.4% YoY, reaching ₹4,350 crore.
The board of directors approved an interim dividend of ₹12 per equity share of ₹2 each for the Financial Year 2023-24.
The attrition rate for the company declined to 12.8% in the quarter under review, showcasing an improvement from 14.2% in the previous quarter of the current financial year.
Examining HCL Tech’s segment-wise performance, the telecommunications, media, publishing, and entertainment segment emerged as the growth leader, experiencing a robust 25.9% QoQ expansion. The manufacturing sector followed suit, contributing significantly with a 7.6% sequential growth. The retail and Consumer Packaged Goods (CPG) segment also witnessed growth, albeit at 2.9% sequentially. Conversely, the life sciences and healthcare segment contracted by 3.2% QoQ, and the financial services segment experienced a marginal decline of 1.3%.