HCL Tech Q3 profit rises 31% on digital, cloud momentum

HCL Technologies said it posted a 31% increase in net profit for the third quarter ended December to ₹3,982 crore driven by a ‘robust momentum’ in the company’s businesses led by digital, cloud and products and platform segments.

The company also announced that it crossed $10 billion in revenue in 2020.

For Q3, revenue rose 6.4% to ₹19,302 crore. The IT firm also revised upwards its quarter-on-quarter revenue growth expectations to 2-3% in constant currency from the previous estimate of 1.5-2.5% growth.

“We posted a strong financial performance in Q3 FY21 with a constant currency revenue growth of 3.5% sequentially and 1.1% YoY and an EBIT of 22.9%,” said C. Vijayakumar, president and CEO.

“This solid performance was driven by a robust momentum in our Mode 2 and Mode 3 businesses led by digital, cloud and products and platform segments.”

“Looking ahead, a combination of a strong pipeline and good order booking gives us a lot of optimism about the growth trajectory. I strongly believe that we are uniquely differentiated through a combination of solutions and services,” Mr. Vijayakumar said.

The board of directors has declared an interim dividend of ₹4 per equity share. The firm’s shares closed at ₹989.40 per share, down 3.73% from the previous close on BSE.

Mr. Vijayakumar said during the quarter, the firm won 13 transformational deals across industry verticals, including life sciences and healthcare, technology and financial services.

At the end of December 2020 quarter, HCL Technologies had 1,59,682 employees with a net addition of 6,597 people, while attrition for IT services (on a last 12-month basis) stood at 10.2%.

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