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HCL Tech’s second quarter net profit increased 18.5% to Rs 3,142 crore

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NEW DELHI: IT company HCL Technologies posted an 18.5 percent increase in September quarter net profit of Rs 3,142 crore on Friday.
TI’s principal had posted a net profit of Rs 2,651 crore in the July-September 2019 quarter (based on US GAAP), HCL Technologies said in a regulatory filing.
Its revenue grew 6.1 percent to Rs 18,594 crore in the quarter under review, from Rs 17,528 crore in the corresponding quarter last year.
Sequentially, the net profit was 7.4 percent higher from Rs 2,925 crore, while the top line was higher by 4.2% from Rs 17,841 crore in the June 2020 quarter.
In the second quarter, HCL Technologies posted 4.5% quarter-on-quarter revenue growth in constant currency, higher than its estimate of a 1.5-2.5% sequential increase.
HCL Technologies has maintained its revenue growth guidance of an average increase of 1.5-2.5 percent quarter-on-quarter in constant currency for the third and fourth quarters.
“We have achieved stellar performance in the second quarter with sequential revenue growth of 4.5% in constant currency and an EBIT margin of 21.6%,” said HCL Technologies President and CEO C Vijayakumar.
This growth momentum was driven by continued leadership in the cloud and digital transformation businesses and strong stability in the product and platform segment, all of which continue to open up diverse avenues of growth for the company, he added.
“Our investments over the past few years in next-generation technologies have kept us in a good position during these difficult times and strongly position us to take advantage of the opportunities of emerging markets,” said Vijayakumar.
The board of directors has declared an interim dividend of Rs 4 per share of capital for the financial year 2020-21.
During the quarter, HCL signed 15 transformation agreements. At the end of the September 2020 quarter, HCL had 1,53,085 employees, while IT service attrition (in the last 12 months) was 12.2%.

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