HCL Tech Q4 Net Profit Flat at Rs 3,986 Cr - India's IT Giant

New Delhi, Apr 26 (PTI) India's third-largest IT firm HCL Technologies on Friday posted a flat year-on-year growth in net profit for the March quarter.

However, the company reported an 8.4 per cent decline in net profit sequentially as employee cost rose amid tightening IT spends around the world.

Its consolidated net profit for the fourth quarter of the previous fiscal was Rs 3,986 crore compared with Rs 3,983 crore in FY23.

Sequentially, the net profit declined 8.4 per cent from Rs 4,350 crore in the October-December period, according to the company's filing and statement.

Pre-tax profit (EBIT) of Rs 5,018 crore was down 10.6 per cent quarter-on-quarter but up 3.8 per cent as compared to the previous year.

The company gave a guidance of 3-5 per cent growth in revenue in constant currency terms for FY25 and an EBIT margin of 18-19 per cent.

EBIT margin (per-tax profit as percentage of revenue) declined to 17.6 per cent in the January-March period from 19.8 per cent in the previous quarter and 18.1 per cent a year ago.

Employee cost rose 11.5 per cent during the quarter while the attrition rate at 12.4 per cent was lower than 19.5 per cent in the fourth quarter of last year.

For the March quarter, HCLTech's revenue from operations stood at Rs 28,499 crore, a 7.11 per cent rise from Rs 26,606 crore last year.

For the entire FY24, HCL Tech reported a 5.73 per cent rise in net profit to Rs 15,702 crore.

The revenue during FY24 was marked at Rs 109,913 crore, up 8.33 per cent over the previous fiscal.

"...we have translated this growth into even higher value creation for our shareholders with our OCF coming at USD 2,711 million, up 21.6 per cent YoY and FCF at USD 2,584 million, up 27.7 per cent YoY.

"As we look ahead, global enterprise technology spend will only grow with adoption of AI," HCLTech CEO & Managing Director C Vijayakumar said.

He further said HCLTech is positioned to capitalise with its AI-led propositions, global delivery model and "ideal mix of technology services and products".

The company's total headcount stood at 227,481 during the quarter under review.

HCLTech on Thursday announced the appointment of Lee Fang Chew as an Independent Director of the company, effective from April 25.

The board also declared an interim dividend of Rs 18 per equity share of Rs 2 each for FY25, the company said in a BSE filing, adding, the payment date of the interim dividend will be May 15, 2024.

India's largest IT company TCS had reported a 9.1 per cent rise in its March quarter net profit at Rs 12,434 crore. Infosys profit also saw a 30 per cent upward trajectory at Rs 7,969 crore.

Wipro and Tech Mahindra, however, posted a decline in net profit by 7.8 per cent and 40.9 per cent, respectively.

HCLTech scrip closed at 2.08 per cent lower at Rs 1,472.30 apiece on the BSE on Friday.