HCL Tech Q3 PAT jumps 31% YoY to Rs 3,982 cr

The IT firm's consolidated net profit rose 31.1% to Rs 3,982 crore on 6.4% rise in revenue from operations to Rs 19,302 crore in Q3 December 2020 over Q3 December 2019.

Sequentially, consolidated net profit rose 26.7% and revenue increased 3.80% in Q3 December 2020 (Q3 FY21) over Q2 September 2020 (Q2 FY21). HCL Technologies' profit before tax rose 8.06% quarter-on-quarter (QoQ) to Rs 4,479 crore in Q3 FY21. Total tax expense dropped 49.74% to 502 crore in Q3 FY21 from Rs 999 crore in Q2 FY21.

EBITDA grew 9.9% to Rs 5,443 crore in Q3 FY21 over Q2 FY21. EBITDA margin improved to 28.2% in Q3 FY21 from 26.6% in Q2 FY21.

 

The company's revenue in constant currency grew 3.5% QoQ and rose 1.1% year-on-year (YoY). The company expects QoQ revenue to grow between 2% to 3% in constant currency for Q4 FY21, including DWS contribution. EBIT is expected to be between 21% and 21.5% for FY2021.

C Vijayakumar, the President & Chief Executive Officer (CEO) of HCL Technologies, stated: "We posted a strong financial performance in Q3 FY21 with a constant currency revenue growth of 3.5% sequentially and 1.1% Y-o-Y and an EBIT of 22.9%. This 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."

"I am also delighted to share that we crossed $10 bil. in revenues in 2020. This is a pivotal milestone for us as a company and is a result of HCL's vision, our employees' passion and disciplined execution," he added.

The company has declared an interim dividend of Rs 4 per equity share. Total employee count stood at 1,59,682 as on 31 December 2020 compared with 1,53,085 as on 30 September 2020. IT services attrition (LTM) stood at 10.2%, down 667 bps on YoY basis.

Shares of HCL Technologies slipped 1.62% at Rs 1,011.15. 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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