HCL Tech Q1 profit up 31.7% at Rs 2,925 crore; Shiv Nadar retires

IT firm HCL Technologies on Friday posted 31.7 per cent rise in consolidated net profit at Rs 2,925 crore for the June 2020 quarter, and said that Shiv Nadar has stepped down from the Chairman's role.

The IT major had registered a net profit of Rs 2,220 crore in the April-June 2019 quarter (as per US GAAP), HCL Technologies said in a regulatory filing. Its revenue grew 8.6 per cent to Rs 17,841 crore in the quarter under review, from Rs 16,425 crore in the corresponding quarter last year.

On a sequential basis, the top line was lower by 4 per cent from Rs 18,590 crore in the March quarter.

"The adverse conditions during this quarter had an anticipated negative impact on our revenue. I am happy to report that the resilience of our operating model helped us deliver stellar operating margins and cashflows," HCL Technologies President and CEO C Vijayakumar said. He added that the company had healthy bookings, enabled by 11 new transformational deal wins.

"We also renewed several large deals during the quarter... We are seeing a robust demand environment and a strong pipeline which gives us confidence in our growth trajectory going forward," he said.

In constant currency terms, HCL Tech's revenue in June 2020 quarter grew 1 per cent year-on-year, the filing said.

HCL Technologies expects its revenue to increase quarter-on-quarter by an average of 1.5-2.5 per cent in constant currency for the next three quarters, it added. HCL Technologies has announced a dividend of Rs 2 per share.

At the end of June 2020 quarter, HCL had 150,287 employees with a gross addition of 7,005 people. Its attrition for IT services (on last 12 month basis) was at 14.6 per cent.

The filing said the Board of Directors has appointed Roshni Nadar Malhotra, a none-executive director, as Chairperson of Board and company with effect from Friday in place of her father, Shiv Nadar.

"...Shiv Nadar, who expressed his desire to step down from position of Chairman. Mr Nadar would continue to be MD of Company with designation as Chief Strategy Officer," the filing said. Roshni Nadar Malhotra, will succeed him with immediate effect.