HCLTech Q4 results: Net profit rises 8% to ₹4,307 crore, revenue up 6.1%

Revenue from operations came in at ₹302.46 billion, slightly below the projected ₹302.75 billion

HCL Technologies Ltd posted a consolidated net profit of ₹4,307 crore for the fourth quarter, an 7.81 per cent rise, falling just short of the IBES estimate of ₹4,356 crore.

 

The company had posted a net profit of ₹3,995 crore in the fourth quarter of FY24.

 

Revenue from operations came in at ₹30,246 crore, up 6.1 per cent, slightly below the projected ₹30,275 crore.

 

The company also announced an interim dividend of ₹18 per share.

 

The company’s services segment recorded a 4.8 per cent rise in constant currency revenue in FY25.

 

Digital services continued to perform strongly, growing 8.6 per cent in constant currency and contributing 39 per cent to the total services revenue. HCLSoftware posted a 3.5 per cent increase in constant currency revenue, with its annual recurring revenue (ARR) reaching $1.03 billion, up 1.8 per cent in constant currency in FY25.

 

 

HCLTech reported earnings before interest and tax (EBIT) of ₹21,420 crore in FY25, which represents 18.3 per cent of its total revenue and marks a 7.0 per cent increase from the previous year.

 

Net income rose by 10.8 per cent to ₹17,390 crore in FY25, accounting for 14.9 per cent of revenue. Diluted earnings per share (EPS) stood at ₹64.09, also up 10.8 per cent.

 

The company’s return on invested capital (ROIC) in FY25 improved significantly, reaching 37.9 per cent — a rise of 411 basis points — while ROIC for the services segment increased to 45.5 per cent, up 376 basis points.

 

In FY25, operating cash flow (OCF) came in at $2.63 billion and free cash flow (FCF) at $2.50 billion, with a FCF-to-net-income conversion rate of 123 per cent.

 

HCLTech declared a total dividend of ₹60 per share for the full year, resulting in a payout ratio of 93.5 per cent for FY25.

 

HCLTech’s total employee count stood at 223,420 at the end of the financial year, reflecting a net reduction of 4,061 employees. This decline was primarily due to the divestiture of certain business units, which accounted for a reduction of 7,398 roles.

 

Despite the overall drop, the company added 7,829 fresh graduates during the year. The last twelve-month (LTM) attrition rate rose to 13.0 per cent, up from 12.4 per cent in the same quarter last year.