HCL Tech reported a net profit of Rs 4,235 crore for the quarter ending September 30, 2023, reflecting a 10% year-on-year increase from Rs 3,833 crore. The company highlighted strong second-quarter results with total revenue of Rs 28,862 crore, which represents a 2.9% quarter-on-quarter growth and an 8.2% year-on-year increase.
In constant currency terms, revenue growth was 1.6% quarter-on-quarter and 6.2% year-on-year. The company’s USD revenue stood at $3,445 million, marking a 2.4% increase sequentially and a 6.8% rise year-on-year. HCL Tech’s earnings before interest and taxes (EBIT) was reported at Rs 5,362 crore, accounting for 18.6% of revenue, showing an 11.8% increase quarter-on-quarter and 8.7% year-on-year.
HCLTech’s Services revenue increased by 1.6% quarter-on-quarter and 5.9% year-on-year in constant currency. The digital revenue segment surged by 7.8% year-on-year, contributing 38.5% to the total services revenue. HCLSoftware also experienced a 9.4% year-on-year rise, with an annual recurring revenue (ARR) of $1.05 billion, up 0.6% year-on-year.
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The company’s return on invested capital (ROIC) rose to 35.7%, an increase of 353 basis points year-on-year, while the services segment achieved a ROIC of 43.5%, up 403 basis points. Operating cash flow totaled $2,521 million, and free cash flow was $2,388 million over the last twelve months.
HCLTech secured new contracts with a total contract value (TCV) of Rs 18,451.6 crore. Additionally, the company declared a dividend of Rs 12 per share for the financial year 2024-25, marking its 87th consecutive quarter of dividend payments. The record date for shareholders is set for October 22, 2024, with payment scheduled for October 30, 2024, pending Board approval.
