HCL Tech Q3 PAT jumps 35% YoY to Rs 3,969 cr; ups revenue guidance to 3%
By Administrator_India
HCL Technologies on Friday posted a 34.8 per cent year-on-year (YoY) jump in its consolidated net profit to Rs 3,969 crore for the December 2020 quarter (FY2021) from Rs 2,944 crore posted in the same period last year. While sequentially, the figure rose 26.2 per cent.
Meanwhile, the revenue for the quarter under review increased by 6.43 per cent YoY and 3.80 per cent quarter-on-quarter (QoQ) to Rs 19,302 crore. The revenue figure stood at Rs 18,135 crore in the corresponding quarter previous year and at Rs 18,594 crore in the September quarter.
The dollar revenue for the December quarter was at $2,617 million, up 4.4 per cent QoQ and 2.9 per cent YoY. The revenue in constant currency was up 3.5 per cent QoQ and 1.1 per cent YoY.
The firm said it expects revenue to grow between 2 per cent to 3 per cent in constant currency terms for Q4FY21, including DWS contribution.
Earnings before interest and tax (EBIT) for the December quarter came in at Rs 4,416 crore, up 20.3 per cent YoY. On a sequential basis, it was up 10 per cent. EBIT margin for the said quarter stood at 21.5 per cent. The firm said EBIT margin for FY21 is expected to be between 21 per cent and 21.5 per cent.
The company also declared an interim dividend of Rs 4 per equity. The record date for the same has been set as January 23, 2021.
“We posted a strong financial performance in Q3 FY21 with a constant currency revenue growth of 3.5 per cent sequentially and 1.1 per cent YoY and an EBIT of 22.9 per cent. This solid performance was driven by a robust momentum in our Mode 2 and Mode 3 businesses led by Digital, Cloud and Products & Platform segments. Our results reflect the success of the strategic investments we have made over the years including unique ecosystem constructs with all Cloud Hyperscalers, organic and inorganic investments in a broad-based IP and Platforms portfolio and an enterprise digital transformation value proposition that is truly integrated and differentiated”, said C Vijayakumar, President & CEO, HCL Technologies.
The firm beat analysts’ expectations that were projecting a profit growth of HCL 2 per cent-5.5 per cent on yearly basis and flat on quarterly basis. On the higher end, Sharekhan pegs Q3 PAT at Rs 3,205 crore, up 5.5 per cent YoY and 2 per cent QoQ. This is against a Rs 3,038 crore profit posted by the firm in Q3 of FY20 and Rs 3,142 crore in the previous quarter of same fiscal.
Most analysts had said they see a 5-6 per cent year-on-year (YoY) rise in Q3 revenue, led by broad-based growth across verticals and geographies, and easing of stress in the ER&D segment. Emkay Global was pencilling in revenue growth of 4.6 per cent YoY and 2 per cent QoQ at Rs 18,970.2 crore.
HCL Tech said IT Services attrition (LTM) for Q3 was at 10.2 per cent, down 667 bps on YoY basis while net additions were at 6,597 during the quarter.
