HCL Technologies Q2 net profit rises 11% to ₹4,235 crore-OxBig News Network

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IT services company HCL Technologies on Monday (October 14, 2024) reported a 10.51% rise in consolidated net profit to ₹4,235 crore in the July-September quarter of the current fiscal.

It had reported a net profit of ₹3,832 crore in the year-ago period.

Revenue came in at ₹28,862 crore during the reporting quarter, 8.21% higher than ₹26,672 crore in the year-ago period.

HCLTech CEO & Managing Director C Vijayakumar said that the company’s pipeline is very strong, including data & AI, digital engineering, SAP migration and efficiency-led programmes.

“Revenue growth has come with an improved profitability. Our EBIT margins in Q2 rose to 18.6%, up 149 bps sequentially. LTM Return on Invested Capital (ROIC) stands at solid 35.7% at company level and 43.5% at services, an expansion of 353 bps YoY and 403 bps YoY respectively,” said HCLTech CFO Shiv Walia.

HCLTech added 780 employees during the quarter, bringing the tally to 2,18,621.

The Noida-headquartered firm has given a revenue growth guidance of 3.5-5.0% year-on-year in constant currency.

“GenAI offerings like AI Force and AI Foundry are resonating very well with our clients and should be drivers of efficiency, growth, and innovation over the medium term,” Vijayakumar further said.

He also noted that the company delivered a strong quarter with revenue growing 1.6 per cent quarter-on-quarter in constant currency.

“This growth was well distributed across verticals, geographies, and offerings. HCL Software has delivered a stellar performance of 9.4% YoY this quarter and 6.4% growth in H1 FY25 in constant currency, demonstrating the increasing relevance of our products for the digital economy,” he said.

The board has declared an interim dividend of ₹12 per equity share of ₹2 each for 2024-25.