HCLTech net profit rises 6.2% to Rs 4,350 crore in December quarter

Indian technology company HCLTech has reported a 6.2% increase in consolidated net profit, reaching a record Rs 4,350 crore. Besides profit, The consolidated revenue also saw a growth of 6.5%, amounting to Rs 28,446 crore, compared to Rs 26,700 crore in the same period last year.

Operational efficiency 

The company's operational efficiency is evident in its EBIT margin, which stood at 19.8%, marking an expansion of 126 basis points quarter-over-quarter. This improvement underscores HCL Tech's strong execution and cost efficiencies. Additionally, the company secured 18 large deals, including six in Services and 12 in Software, with a total contract value of nearly $2 billion.

Segment growth

HCL Tech's services revenue grew by 3.1% quarter-over-quarter in constant currency, surpassing an annual run rate of $12 billion. The company said that its software segment showed 5% year-over-year increase and an annual recurring revenue of over $1 billion. 

“Our results this quarter have been remarkably strong, driven by strong momentum in both services and software businesses and a stellar operating margin. HCLSoftware’s performance was another bright spot and we are excited about its strategic progress over the last year,” said C Vijayakumar, CEO & Managing Director, HCLTech.

Investments and expansion

The company continues to invest in cutting-edge technologies like AI, specifically Generative AI, and cloud-native capabilities.

“We continue to invest in AI, specifically Generative AI as well as cloud native capabilities across our products and services to address evolving client needs. We remain confident of our continued growth momentum enabled by our business mix, our people and laser-sharp focus on delivering innovation and hyper-automation to our clients," Vijaykumar added.

According to the company, these investments are aimed at addressing evolving client needs and maintaining growth momentum. Geographically, revenues from Europe and the Americas grew by 5% and 3.1% quarter-over-quarter, respectively.

HCLTech's attrition rate

The attrition rate was also reduced from 14.2% in the previous quarter to 12.76%. The company also reported a net addition of over 3,600 employees, bringing its total headcount to over 224,700 across 60 countries. 

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