HCL Technologies Q2 PAT up 3.7% yoy at Rs3,259cr on healthy EBITDA margins at 23.4%

HCL Technologies Ltd reported 11.08% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs20,655cr

Oct 14, 2021 07:10 IST India Infoline News Service

HCL Technologies
HCL Technologies Ltd reported 11.08% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs20,655cr. On a sequential basis, the revenues were higher by a more moderate 2.93% compared to Rs20,068cr in the Jun-21 quarter. HCL Tech witness robust growth yoy in constant currency terms of above 13% in services revenues while the products and platforms business saw contraction of -5.5% in top line.

In terms of verticals, the IT and business services grew 13.2% yoy and 5.2% sequentially. This business accounted for 73% of total revenues and enjoyed an EBIT margin of 18.8%. The other vertical of Engineering and R&D services grew by 12.7% yoy and 5.4% sequentially. This segment reported 19.3% EBIT margins and accounted for 16% of total revenues.

During the quarter, HCL Tech had 14 large deal wins and the total contract value (TCV) of deals stood at $2.25 billion. That is a growth of 38% in TCV on a yoy basis. In terms of industry practices, life sciences & healthcare grew at 20.1% while the Telecom and manufacturing practice grew in the range of 12 to 13% on yoy basis. HCL Tech declared Rs.10 interim dividend and this marks the 75th consecutive quarter of dividends.

For the Sep-21 quarter, net profits were up 3.69% on a yoy basis at Rs3,259cr while on a sequential basis, the profits were up by 1.68%. In terms of guidance, HCL Tech has guided for double digit revenue growth in FY22 and operating margins have been projected in the 19% to 21% range. Its current OPM at 23.5% is at par with Infosys and a tad below TCS.


Financial highlights for Sep-21 compared yoy and sequentially


HCL Technologies
Rs in Crore Sep-21 Sep-20 YOY Jun-21 QOQ
Total Income (Rs cr) ₹ 20,655 ₹ 18,594 11.08% ₹ 20,068 2.93%
Operating Profit (Rs cr) ₹ 3,944 ₹ 4,026 -2.04% ₹ 3,934 0.25%
Net Profit (Rs cr) ₹ 3,259 ₹ 3,143 3.69% ₹ 3,205 1.68%
Diluted EPS (Rs) ₹ 12.01 ₹ 11.58 ₹ 11.81
OPM 19.09% 21.65% 19.60%
Net Margins 15.78% 16.90% 15.97%

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