HCL Tech Q3 net profit rises to Rs 3,037 crore

HCL Technologies consolidated net income rose 14.6% to Rs 3,037 crore while revenues rose 3.5% to Rs 18,135 in Q3 December 2019 over Q2 September 2019.

The IT firm disclosed Q3 results after trading hours today, 17 January 2020. Shares of HCL Technologies rose 0.91% to end at Rs 598.80 on Friday.

Consolidated EBITDA rose 8.9% to Rs 4,470 in Q3 December 2019 over Q2 September 2019. EBIT margin stood at 20.2% in Q3 December 2019 compared with 20% in Q2 September 2019.

The net income rose 16.3% in Q3 December 2019 from Rs 2,611 crore in the corresponding period last year. Revenues increased 15.5% in the December quarter as against Rs 15,699 crore in Q3 December 2018. Consolidated EBITDA rose 22.6% on year-on-year basis.

The company sees revenue growth between 16.5% and 17% in constant currency terms in FY20, while operating margin will be in the range of 19-19.50%.

HCL Technologies' board declared a dividend of Rs 2 per share.

We have delivered best-in-class 16.4% revenue growth in constant currency. EBITDA margin at 24.7% expanded 152bps,and EBIT margin at 20.2% expanded 68bps on YoY basis. OCF as percentage of net income at 109% on YTD basis demonstrates the expected improvement in cash flows we have been guiding over the past few quarters. This is also evident by LTM cash EPS now at '48.6, up by robust 20.6% on YoY basis. Cash generation this quarter has been extremely strong, with operating cash flow above $700 million and free cash flow above US$650 million. Net cash is now at $1.1 billion. We are also happy to have secured 'A-' credit rating, with Stable Outlook, from S&P Global," said Prateek Aggarwal, CFO, HCL Technologies.

C Vijayakumar, president & CEO, said, "We continue our stellar performance over the years and have now crossed a revenue run rate of $10 bn this quarter. Our revenues have grown 16.4% YoY in constant currency and we have delivered a strong 20.2% EBIT. Within two quarters of its inception, HCL Software has already onboarded 4,600 customers. I am pleased that our results continue to validate and reinforce our growth, profitability and investment strategies."

The company added 11,502 employees (gross) during the quarter to take its total headcount to 1,49,173 at the end of the December 2019 quarter. Attrition on last 12-month basis stood at 16.8%.

As a leading global technology company, HCL Technologies (HCL) 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).

Powered by Capital Market - Live News