HCL TECH Q3 RESULTS 2024: PROFIT RISES, DIVIDEND DECLARED

HCL Tech reported its December quarter numbers on Friday evening, and the results were in line with the estimates. Let us look at the December 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: 34.75
• ROE: 29.35
• Market Cap: 4,18,718.52 crore
• 52-week high: 1,554.75

Share Price Movement

Earlier in the day, HCL's share price closed at Rs 1,540.80, up 3.77%. In the six-month period, HCL shares have gained nearly 38.20%, higher than most peers. In the last one year, the share price has given an exceptional return of 46.08% to investors, higher than the index returns. In the 5-year period, HCL shares have more than doubled investors' investment with returns of over 200%. 

HCL Q3FY24 Result Details

Revenue: The company reported a revenue of Rs 28,446 crore in Q3FY24. Sequentially (compared to the September quarter), the revenue is up 6.7% and has increased by 6.5% year on year. In constant currency terms, the revenue was up 6% sequentially and 4.3% YoY. The Digital Revenue was up 5% and contributed 37.7% of HCL Tech Services Revenue. 

The revenue growth was seen for the European and American markets - it reported a YoY CC growth of 1.7% and 6.7%, respectively. The rest of the World reported a decline in revenue of 7.5% YoY. 

Among verticals, Financial Services was the best-performing vertical, with YoY (CC) growth of 12.9%. Three verticals saw a decline in revenue: Technology & Services and Public Services.

EBIT and Profits: EBIT reported by the company was Rs 5,615 crore, up 13.8% sequentially and 7.4% YoY. The net income reported by the company was Rs 4,350 crore, up from Rs 3,832 crore in the September quarter and Rs 4,096 crore in the year-ago period.

Margins: The EBIT margins for Q3FY24 were 19.8%, an increase from 18.5% in the September quarter. In the year-ago period, the margins were at 19.6%. The Net Income margins have increased from 14.4% in Q2FY24 and 15.3% in Q3FY23 to 15.3% in Q3FY24.

Guidance: The company has given a revenue growth guidance between 5% and 5.5% year on year (CC). EBIT margins to be between 18% and 19%. 

Deal wins: The company won 18 large deals in the December quarter, with 6 in Services and 12 in Software. New Deal wins stood at $1,927 million. The total headcount stood at 2,24,756, with a net drop of 3,617 employees in the quarter.

Dividend: The company has declared an interim dividend of Rs 12 per share. The Record date of January 20, 2024, fixed for the payment of the interim dividend has been confirmed. The payment date of the said interim dividend shall be January 31, 2024.

Check results of other companies - TCS & Infosys and Wipro