HCL Tech's Q2 profit increased by 7%

13 Oct 2022 , 02:40 PM

An industry leader in IT services, HCL Technologies, increased its full-year revenue growth target on Wednesday from 12 to 14% on a constant currency basis, citing robust order bookings and pipeline. This comes after it announced a consolidated net profit of Rs3,489 crore for Q2FY23, up 7.09% year over year (YoY) as a result of new order wins.

In comparison to the same period last year, the IT company's sales increased 19.5% to Rs24,686 crore. According to the IT giant, the growth of its services division, which includes engineering, cloud, and digital services, was 18.9% YoY. According to the company's projection, the services revenue is anticipated to increase 16—17% YoY in FY23.

In comparison to the previous quarter's net profit of Rs3,283 crore, HCL's net profit increased by 6.3% sequentially. Comparing Q1 FY23 revenue to Q1 FY23 revenue, the revenue increased by 5.2%.

"HCLTech turned up yet another impressive result this quarter. This demonstrates the wisdom of our strategic decisions and the potency of our operational structure. With bookings of $2.4 billion in the most recent quarter, we have had a really solid performance. It has 11 sizable service and product discounts. On a total contract value basis, the bookings increased by 6%. The major transaction we secured this quarter won't begin to affect our revenue until FY24, according to C Vijayakumar, CEO and managing director of HCL Tech.

The earnings before interest and taxes (Ebit) margin for the firm decreased by 1% from the same time last year. 18% was the margin for the quarter. The probability of a worldwide recession has grown as a result of high levels of inflation across the board and simultaneous interest rate increases by central banks throughout the world. According to the International Monetary Fund (IMF), global growth would decline from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023.

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