HCLTech reports 11% jump in Q2 net profit to ₹4,235 crore

Company announces interim dividend of ₹12 for FY25; to give an average pay hike of 7%, top performers to get up to 15%

HCLTech on Monday reported an 11% increase in second quarter net profit to ₹4,235 crore from ₹3,832 crore in the year-earlier period.

Revenue from operations rose 8.2% to ₹28,862 crore from ₹26,672 crore in the previous year.

The Noida-based tech firm also reported new deal wins to the tune of $2,218 million.

However, sequentially, HCLTech’s Q2 net profit declined marginally (0.5%), while net revenue grew 2.9%. The company also revised its revenue growth forecast for FY25 to 3.5-5%, from 3-5% earlier.

“The company delivered a strong quarter with revenue growing 1.6% Q-o-Q in constant currency and EBIT coming in at 18.6%. The growth was well-distributed across verticals, geographies, and offerings,” CEO & MD C. Vijayakumar said at a press conference.

“Our pipeline is very strong, including Data & AI, Digital Engineering, SAP migration and efficiency led programmes. Our GenAI offerings like AI Force and AI Foundry are resonating very well with our clients and should be drivers of efficiency, growth, and innovation over the medium term,” he further said.

Shiv Walia, Chief Financial Officer, HCLTech said the company had delivered robust financial results with constant currency (CC) revenue growth at an industry leading 6.2% YoY. “Our revenue growth has come with an improved profitability. Our EBIT margins in Q2 rose to 18.6%, up 149 bps sequentially,” he said.

The board has declared an interim dividend of ₹12 for FY25, with the record date being fixed as October 22. The payment date of the interim dividend would be October 30, 2024.

Fresher hiring and pay hike

HCLTech said all eligible employees who had completed a year in service with the company would be given an average pay hike of 7% in October. “Increases would be linked to performance and top performers would continue to see double-digit increases in the range of 12-15%,” said chief people officer Ramachandran Sundararajan.

The company also said it would continue to hire freshers but would look for specialised skill sets.

HCLTech chairperson Roshni Nadar Malhotra said, “We have sharpened our focus on upskilling our people in next-generation technologies to continue enabling the art of the possible for our clients.”

In Q2, the company hired 2,932 freshers. As on September 30, 2024, it has a total headcount of 2,18,621. The quarter saw attrition dropping to 12.9% from 14.2% a year earlier.

Published - October 14, 2024 08:31 pm IST