HCL Tech's Net Profit Soars 6% YoY To Rs 4,350 crore By CIOTechOutlook Team

HCL Tech's Net Profit Soars 6% YoY To Rs 4,350 crore

CIOTechOutlook Team | Saturday, 13 January 2024, 01:45 IST

HCL Tech, an IT services business, reported its consolidated net profit increased 6% year on year to Rs 4,350 crore in the December 2023 quarter. It was Rs 4,096 crore a year earlier.

Revenue from operations also increased 6% in the said period to Rs 28,446 crore. The Board of Directors has declared an interim dividend of Rs 12 per equity share and fixed January 20 as the record date for the same. The payment date of the said interim dividend will be January 31, as per economic times.

HCL Tech predicts constant currency (CC) sales growth of 5–5.5% in fiscal year 2024, with an EBIT margin of 18–19%. Consolidated EBIT increased 7% year on year to Rs 5,615 crore in the period under review.

In CC terms, revenue increased by 4% year on year in the third quarter, with USD value growth of 5% YoY. The services segment's constant currency revenue increased by 4% year on year, driven by growth in telecommunications, media, publishing, and entertainment. The services revenue exceeded the yearly run rate of $12 billion.

Digital revenue increased 5% year on year in October-December. HCL Tech won new deals worth $1.9 billion in the third quarter, including 18 significant ones.

The operating margin for the quarter under review was 19.8%, an increase of 16 basis points year on year and 126 basis points quarterly.

"Our results this quarter have been remarkably strong, driven by momentum in both services and software businesses. We are quite excited about the strategic progress HCL Software has made over the last year," said C Vijaykumar, CEO and MD, HCL Tech.