HCLTech announced its results for the fourth quarter of FY24 on Monday, with the net profit increasing marginally by 0.35% to Rs 3,995 crore from Rs 3,981 crore in the same quarter last year.
The company’s profit after tax declined by 8% compared to the previous quarter, amounting to Rs 4,351 crore versus Rs 4,738 crore in the October-December period.
Consolidated revenue from operations reached Rs 28,499 crore, showing a 5.3% increase from Rs 27,059 crore in Q4FY23.
The board of directors announced an interim dividend of Rs 18 per equity share (with a face value of Rs 2 each) for the financial year 2024-25.
“The Board of Directors has declared an Interim Dividend of Rs 18 per equity share of Rs 2 each of the Company for the Financial Year 2024-25,” said the official statement of HCLTech.
In terms of constant currency (CC), revenue for the quarter rose by 0.3% compared to the previous quarter and by 6.0% compared to the same period last year. The revenue in USD was reported at $3,430 million, up 0.4% from the previous quarter and 6% year-on-year (YoY).
The company secured new deals worth $2,290 million, winning 21 large deals – 13 in services and 8 in software.
Revenue from services in constant currency increased by 3% quarter-on-quarter (QoQ) and by 6.7% year-on-year (YoY), driven by growth in telecommunications, media publishing & entertainment (up 21.6% QoQ & 39.2% YoY). Digital segment revenue grew by 6.3% YoY, contributing 37.1% of services.
Key financial metrics include Earnings Before Interest and Taxes (EBIT) at Rs 5,018 crore (17.6% of revenue), down 10.6% QoQ and up 3.8% YoY. Net income was Rs 3,986 crore (14.0% of revenue), down 8.4% QoQ and up 0.1% YoY.
The company reported a Return on Invested Capital (ROIC) of 33.8% on a last twelve months (LTM) basis, up by 341 basis points (bps) YoY.
Total headcount stood at 227,481, with 3,096 new hires. The attrition rate over the last twelve months was 12.4%, down from 19.5% in the fourth quarter of the previous year.
Full-year revenue amounted to Rs 1,09,913 crore, up by 8.3% overall and by 5% in constant currency terms.
The Total Contract Value (TCV) for the full financial year was $9,759 million, up by 10% due to winning 73 new large deals – 36 in services and 37 in software.
EBIT for FY24 was Rs 20,027 crore, up by 8.4%. Net income for FY24 reached Rs 15,702 crore, up by 5.7%.
For the financial year 2024-25, HCL Technologies anticipates that the company’s constant currency (CC) revenue and services revenue will grow between 3-5% year-on-year (YoY).
“HCLTech continues to lead the industry in FY24 with good USD revenue growth of 5.4% YoY during challenging times through our strong commitment to our clients and our people. More importantly, we have translated this growth into even higher value creation for our shareholders with our OCF coming at US$ 2,711Mn, up 21.6% YoY and FCF at US$ 2,584 Mn, up 27.7%YoY,” said C Vijayakumar, CEO & Managing Director, HCLTech.
“As we look ahead, global enterprise technology will only grow with the adoption of AI. We are well positioned to capitalise with our AI led propositions,global delivery model and ideal mix of technology services and products,” said Vijayakumar.