HCLTech revenue up 7% to $3.4Bn in Q4
NOIDA, INDIA — IT service provider HCL Technologies (HCLTech) reported a 7.1% increase in its revenue to ₹28,499 crore ($3.41 billion) for the fourth quarter of fiscal year 2024, compared to last year’s ₹26,606 crore ($3.19 billion).
At the same time, the company reported a slight increase in consolidated net profit, rising by 0.1% to ₹3,986 crore ($478 million) from ₹3,983 crore ($477 million) in the same period last year.
HCLTech CEO and Managing Director C Vijayakumar said that the firm “continues to lead the industry in FY24 with good USD revenue growth of 5.4% YoY during challenging times through our strong commitment to our clients and our people.”
“More importantly, we have translated this growth into even higher value creation for our shareholders with our OCF coming at $2,711 mn, up 21.6% YoY, and FCF at $2,584 mn, up 27.7% YoY,” he added.
Financial highlights and dividend announcement
Despite the overall growth, the company’s net profit for the quarter was down 8.4% from the December quarter, reflecting decelerating tech spending among clients due to macroeconomic pressures.
The EBIT margin also declined to 17.6% from 19.8% in the previous quarter.
HCLTech also revised its constant currency revenue growth guidance for FY25 to 3-5% from the previous 5-5.5%.
The Board of Directors declared an interim dividend of ₹18 ($0.22) per equity share for FY25, marking the 85th consecutive quarter of dividend payout. The record date for the dividend is set for May 7, 2024, with the payment date on May 15, 2024.
Operational and sector performance
HCLTech’s total headcount reached 227,481 by the end of March, with a significant reduction in attrition rates to 12.4% from 19.5% a year earlier.
Sector-wise, the technology and services vertical saw a decline of 8.7% YoY, while the telecom, media, publishing, and entertainment vertical grew by 39.2% YoY. The manufacturing vertical also showed strong performance, growing by 14.3% YoY.
Strategic outlook and new deals
Looking forward, Vijayakumar expressed optimism about the future, particularly with the increasing adoption of AI technologies.
“As we look ahead, global enterprise technology spend will only grow with adoption of AI. We are well positioned to capitalize with our AI led propositions, Global delivery model and ideal mix of technology services and products,” he stated.
In terms of new business, HCLTech secured $2.29 billion in new deal wins during the quarter, up from $1.93 billion in the previous quarter. The company won 21 new large deals, with a healthy mix of services and software contracts.
HCLTech Chairperson Roshni Nadar Malhotra also highlighted the company’s commitment to sustainable and responsible business practices.
“Led by a differentiated portfolio, HCL Tech continues to grow despite global economic and geopolitical headwinds. Our focus on doing business sustainably and responsibly is sharper than ever as we scale our community initiatives beyond India,” she stated.
HCLTech is a leading provider of digital, engineering, and cloud solutions to businesses around the globe. It recently secured the #7 spot in the OA500 2024, an objective index of the world’s top 500 outsourcing companies.
