HCL Tech Q2 PAT rises 18% YoY to Rs 3142 cr

The IT firm's consolidated net profit rose 18.5% to Rs 3,142 crore on 6.1% increase in revenue to Rs 18,594 crore in Q2 September 2020 over Q2 September 2019.

Sequentially, consolidated net profit rose 7.4% and revenue increased 4.2% in Q2 September 2020 (Q2FY21) over Q1 June 2020 (Q1FY21). HCL's provision for tax rose 7.53% to 999 crore in Q2FY21 from Rs 929 crore in Q1FY21.

Consolidated EBITDA grew by 8.4% to Rs 4,951 crore in Q2FY21 from Rs 4,566 crore in Q1FY21. EBITDA margin improved to 26.6% in Q2FY21 from 25.6% in Q1FY21.

The company's revenue in constant currency grew by 4.5% QoQ but declined 0.4% YoY. The company expects revenue to grow quarter-on-quarter (QoQ) by an average of 1.5% to 2.5% in constant currency for Q3 and Q4 FY2021. EBIT is expected to be between 20% and 21% for FY2021.

Commenting on company's performance, C Vijayakumar, President & CEO, HCL Technologies said, "We have delivered a stellar Q2 performance with a sequential revenue growth of 4.5% in constant currency and 21.6% EBIT margin. This growth momentum was driven by our continued leadership in Digital Transformation and Cloud businesses and a strong stability in the Products & Platforms segment, all of which continue to open diverse growth avenues for us. Our investments over the last few years in next-gen technologies have held us in good stead during these difficult times and position us strongly to leverage the emerging market opportunities."

The company has declared an interim dividend of Rs 4 per equity share. Total employee count stood at 153,085 as on 30 September 2020 compared with 150,287 as on 30 June 2020. IT services attrition (LTM basis) stood at 12.2%, down 470 bps YoY.

Shares of HCL Technologies were down 2.96% at Rs 834 on BSE. The company 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).

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