HCL Tech Q1 PAT rises 8.5% YoY to Rs 3,214 cr

On a consolidated basis, the IT firm's net profit jumped 8.5% to Rs 3,214 crore on 2.2% increase in revenues to Rs 20,068 crore in Q1 June 2021 (Q1 FY22) over Q4 March 2021 (Q4 FY21).

On a full year basis, the company's consolidated net profit surged 9.9% while revenue from operations soared 12.5% in Q1 June 2021 over Q1 June 2020. EBITDA stood at Rs 4,908 crore in Q1 FY22, falling 3.7% over Q4 FY21 and rising 7.5% over Q1 FY21. During the quarter, EBITDA margin stood at 24.5% while EBIT margin was at 19.6%.

In dollar terms, revenue stood at $2,720 million, up 0.9% QoQ and up 15.5% YoY. Revenue in constant currency terms rose 0.7% QoQ and up 11.7% YoY.

In its guidance, the company said its revenue is expected to grow in double digits in constant currency for FY22. EBIT margin is expected to be between 19.0% and 21.0% for FY22.

HCL Technologies Q1 TCV (total contract value) of new deal wins stood at $1664 million, recording a growth of 37% Y-o-Y, enabled by 8 large services deal wins and 4 significant product wins.

The total headcount stood at 1,76,499 with net addition of 7,522 during the quarter. IT services attrition (on LTM basis) at 11.8% in Q1 FY22 (down from 14.6% last year).

Despite the pandemic impacting India badly during the quarter, HCL delivered 8.5% growth in Profit After Tax (PAT) quarter-on-quarter at Rs 3,214 Crores (US$436m) ensuing Net Income margin of 16%. In line with the profits, we generated Operating Cash Flow (OCF) of US$447m and Free Cash Flow (FCF) of US$403m, being 102% and 93% of PAT respectively. Our OCF & FCF yields remain amongst the highest among peers at 6.2% and 5.5% respectively. During the quarter, we paid out '4,341 Crores (US$588m) of Dividend, post which our Net Cash was at US$2053m at the end of the quarter, said Prateek Aggarwal, CFO, HCL Technologies.

With the second wave of the COVID-19 pandemic across India, we remain sharply focused on protecting the wellbeing of our employees and their families. Extensive support services were provided to the families on a war footing, while our employees and clients rallied to support each other despite all odds. We posted 11.7% YoY revenue growth in constant currency and 29.0% YoY growth in Mode 2 services in constant currency headlined by Cloud and Digital transformation deals. We remain very confident of a good QoQ growth for the rest of this year, enabled by 37% YoY growth in bookings and 7,500+ net hiring this quarter, said C Vijayakumar, chief executive officer, HCL Technologies.

The board has declared an interim dividend of Rs 6 per equity share of Rs 2 each of the company for the FY2021-22. The record date is fixed on 28 July 2021.

HCL Technologies offers its services and products through three business units - IT and Business Services (ITBS), Engineering and R&D Services (ERS) and Products & Platforms (P&P).

Shares of HCL Technologies declined 2.27% to Rs 977.45 on BSE. The stock traded in the range of Rs 975 to Rs 1,008 during the day.

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