- 23 Jul 2024
- ICICIdirect
HCL Q1 RESULTS 2025: PROFIT RISES, BEAT ESTIMATES, DIVIDEND DECLARED
HCLTECH - 1711 Change: 8.15 (0.48 %)
HCL Tech reported its June quarter numbers on Thursday evening, 12th July, and the results were above estimates. Let us look at the June quarter numbers in detail.
About HCL
HCL Tech is a global IT services and consulting company known for its innovative approach and customer-centric solutions. With a strong presence in over 50 countries, HCL Tech offers a wide range of services, including digital transformation, cloud computing, cybersecurity, and artificial intelligence.
Crucial Parameters
- PE Ratio: 36.27
- ROE: 29.58%
- Market Cap: 4,23,440.30 crore
- 52-week high: 1,696.50
Share Price Movement
On Thursday, HCL's share price closed at Rs 1,560, up 3.33%. In the six-month period, HCL shares have gained nearly 4.56%, lower than most peers. In the last one year, the share price has given an exceptional return of 38.75% to investors, higher than the index returns. In the 5-year period, HCL shares have more than tripled investors' investment with returns of over 200%.
HCL Q1FY25 Result Details
Here are important numbers from HCL's Q1 results:
Revenue: The company reported a revenue of Rs 28,057 crore in Q1FY25. Sequentially (compared to the March quarter), the revenue was down (+1.6%) and has increased by 6.7% year on year. In constant currency terms, the revenue was down 1.6% sequentially and 5.6% YoY. The Digital Revenue was up 6% and contributed 37.4% of HCL Tech Services Revenue.
The revenue growth was seen for the European and American markets - it reported a YoY CC growth of 3% and 8%, respectively. The rest of the World reported a decline in revenue of (3.6)% YoY.
Among verticals, Telecommunications, Media, Publishing & Entertainment were the best-performing verticals, with YoY (CC) growth of 69.2%. Three verticals saw a decline in revenue: Lifesciences & Healthcare, Financial Services, and Public Services.
EBIT and Profits: EBIT reported by the company was Rs 4,795 crore, down 4.4% sequentially and up 7.5% YoY. The net income reported by the company was Rs 4,257 crore, up from Rs 3,986 crore in the March quarter and Rs 3,534 crore in the year-ago period.
Margins: The EBIT margins for Q1FY25 were 17.1%, a fall from 19.6% in the March quarter. In the year-ago period, the margins were at 17%. The Net Income margins have increased from 13.4% in Q1FY24 and 14% in Q4FY24 to 15.2% in Q1FY25.
Guidance: The company has maintained its FY25 outlook. It has given a revenue growth guidance between 3% and 5% year on year (CC). Services revenue to grow in the same range. EBIT margins to be between 18% and 19%.
Other Details: New Deal wins stood at $1,960 million. The total headcount stood at 2,19,104, with a net addition of 8,080 employees in the quarter. There was a reduction in headcount due to divestiture (7,398). The company added 1,078 freshers in the quarter. LTM Attrition was at 12.8%, down from 16.3% in Q1 of last year.
Dividend: The company has declared an interim dividend of Rs 12 per share, the 86th consecutive quarter of dividend pay-out. The Record date of July 23, 2024, fixed for the payment of the aforesaid interim dividend has been confirmed by the Board of Directors. The payment date of the said interim dividend shall be August 1, 2024.
Management: “We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies.”, C Vijayakumar CEO & Managing Director.