HCL Q3 net profit up 31%, crosses $10-bn revenue milestone in 2020

The company's revenue crossed the $10-billion milestone in 2020, delivering a 3.6 per cent YoY growth in constant currenc

Riding the digitisation wave, HCL Technologies posted a strong set of numbers for the December quarter, with net profit up 31.1 per cent year-on-year (YoY) at Rs 3,982 crore as compared to the corresponding quarter a year ago. The net profit rose 26.7 per cent on a sequential basis.

The Noida-headquartered company’s consolidated revenue rose 6.4 per cent to Rs 19,302 crore YoY and 3.8 per cent sequentially. The EBIT margin of the IT services provider expanded 265 basis points on a YoY basis to 22.9 per cent in the October-December period - a 24 quarter high.

The company’s revenue also crossed the $10-billion milestone in 2020, delivering a 3.6 per cent YoY growth in constant currency.

“The technology sector is in the midst of a massive digitisation wave, with more global enterprises embracing digital transformation to address the disruption of these unprecedented times. Technology has been a key enabler during the pandemic, and as we stand at the cusp of the next phase of technological innovation, it is vital that we draw inspiration from each other’s strengths and offer back our own to create a positive impact,” said Shiv Nadar, chief strategy officer, HCL Technologies.

The company won 13 transformational deals across industry verticals, including life sciences and healthcare, technology and financial services.

“The solid performance was driven by a robust momentum in our Mode 2 and Mode 3 businesses led by digital, cloud and products & platform segments. Our results reflect the success of the strategic investments we have made over the years including unique ecosystem constructs with all cloud hyperscalers, organic and inorganic investments in a broad-based IP and platforms portfolio and an enterprise digital transformation value proposition that is truly integrated and differentiated," said C Vijayakumar, president & CEO, HCL Technologies.

The attrition level was at an all time low for the company at 10.2 per cent, down 667 bps on a YoY basis. “It might inch up in the coming quarters as markets open up and demand for such skills rise,” said Varre Appa Rao, chief human resources officer at the company.