HCL Tech Q3 results: Net profit up 31% to Rs 3,982 crore

New Delhi: IT firm HCL Technologies on January 15 posted 31.1% rise in net profit at Rs 3,982 crore for the December 2020 quarter.

The IT major had registered a net profit of Rs 3,037 crore in the October-December 2019 quarter (as per US GAAP).

Its revenue grew 6.4 per cent to Rs 19,302 crore in the quarter under review, from Rs 18,135 crore in the corresponding quarter last year.

On a sequential basis, net profit was 26.7 per cent higher from Rs 3,142 crore, while topline was higher by 3.8 per cent from Rs 18,594 crore in September 2020 quarter.

In the third quarter, HCL Technologies recorded revenue growth at 3.5% quarter-on-quarter in constant currency – higher than its estimate of 1.5-2.5% sequential rise.

HCL Technologies has revised its sequential revenue growth guidance to 2-3% in constant currency for the fourth quarter. Previously, the company had given a guidance of an average of 1.5-2.5% increase quarter-on-quarter in constant currency for the third and fourth quarter.

“We posted a strong financial performance in Q3 FY’21 with a constant currency revenue growth of 3.5% sequentially and 1.1% year-on-year 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,” said C Vijayakumar, HCL Technologies President and CEO.

The results reflect the success of the strategic investments the company has 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.

The Board of Directors has declared an interim dividend of Rs 4 per equity share for the financial year 2020-21.

HCL Technologies’ revenue has crossed USD 10 billion milestone in CY20, delivering 3.6% year-on-year growth in constant currency.

During the quarter, HCL Technologies signed 13 transformational deals. At the end of December 2020 quarter, HCL had 1,59,682 employees with net addition of 6,597 people, while attrition for IT services (on a last 12 month basis) was at 10.2%.