HCL Tech Q3 net profit drops 13.6% to Rs 3,442 cr


IT firm HCL Technologies posted a 13.6% drop in net profit to Rs 3,442 crore in the December quarter on Friday, but said it had delivered ‘stellar performance’ across all verticals. and geographical.

The IT major had recorded a net profit of Rs 3,982 crore in the October-December 2020 quarter (under US GAAP).

Its revenue rose 15.7% to Rs 22,331 crore in the quarter under review. A year ago, the same amount stood at Rs 19,302 crore, HCL Technologies said in a regulatory filing.

Profit after tax for the third quarter ended December 2021 increased by USD 59.4 million (Rs 438 crore) due to the reversal of the tax provision from previous years due to a change in the method of calculating tax. ‘a tax deduction, based on the assessment of court decisions,’ the filing said.

Excluding the above, on an annual basis, the profit after tax for the last quarter of December decreased by 4.7% in dollars and 2.9% in rupees.

On a sequential basis, net profit increased by 5.4% in the December 2021 quarter from Rs 3,265 crore, and revenue increased by 8.1% from Rs 20,655 crore in the quarter. of September last year.

In the third quarter, HCL Technologies posted sequential revenue growth of 7.6% at constant currencies, the highest in 12 years.

The total contract value (TCV) of new contracts won was $2,135 million in the last quarter of December, up 64% year-on-year.

HCL Technologies maintained its double-digit constant currency revenue growth target for FY22.

“We delivered an outstanding performance this quarter with revenue growth of 7.6% in constant currency quarter over quarter, the highest recorded in the last 46 quarters,” said the CEO of HCL Technologies and MD C Vijayakumar.

The company’s Products and Platforms segment led growth with 24.5%, followed by Engineering and R&D Services with 8.3% and IT and Business Services with 4.7%, all in currency constant from quarter to quarter.

“Our future looks bright as we saw very strong net new booking of $2.1 billion, a 64% year-over-year increase. We also added over 10,000 to our workforce this quarter,” he said.

“I believe we continue to be in a strong position to meet continued demand as our investments in strategic priorities such as digital, cloud and engineering capabilities and our talent development plans are showing strong returns. “, he pointed out.

The company has declared a dividend of Rs 10 per share for the third quarter of this financial year.

At the end of the December quarter, HCL had 1,97,777 employees with a net addition of 10,143 people, while attrition for IT services (based on the last 12 months) was 19.8%.

Attrition excludes involuntary attrition and digital process operations.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)


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