HCL Technologies' stock price down by 5.80% today

29 Apr 2024 , 12:21 PM

On Friday, April 26, HCL Technologies reported a 0.1% increase in consolidated net profit to ₹3,986 Crore for the January-March quarter of fiscal 2023-24 (Q4FY24), up from ₹3,983 Crore the previous year.

In the fourth quarter of FY24, India’s third-largest software and information technology (IT) service provider reported a 7.1% growth in revenue from operations to ₹28,499 Crore, up from ₹26,606 Crore the previous year.

C Vijayakumar, CEO and Managing Director of HCL Tech, highlighted the company’s leading position in the industry for FY24 despite facing challenges. He emphasized their dedication to clients and employees, resulting in a commendable 5.4% year-on-year growth in USD revenue. Notably, they achieved significant value for shareholders, with operating cash flow reaching $2,711 million, a 21.6% increase year-on-year, and free cash flow hitting $2,584 Million, up by 27.7% year-on-year.

HCL Tech’s net profit was relatively modest, falling 8.4% from the previous December quarter, as clients’ IT spending slowed owing to macroeconomic overhang. USD revenue increased six% year-on-year (YoY) to $3,430 Million. Pre-tax profit (EBIT) of ₹5,018 Crore decreased 10.6% sequentially but increased 3.8% compared to the prior year.

EBIT margin (per-tax profit as percentage of revenue) fell to 17.6% in January-March, down from 19.8% in the previous quarter and 18.1% a year earlier. HCL Tech has reduced its constant current sales growth target for FY25 to 3-5% from 5-5.5% in FY24.

HCL Tech’s board has declared an interim dividend of ₹18 per equity share for the current fiscal year (2024-25). This is HCL Tech’s 85th straight quarterly dividend payout. The Board of Directors declared an interim dividend of ₹18 per equity share of the firm valued at ₹2 for the fiscal year 2024-25.

At around 12.17 PM, HCL Tech was trading 5.80% lower at ₹1,388.30 per piece, against the previous close of ₹1,473.85 on NSE. The counter touched an intraday high and low of ₹1,436, and ₹1,382.10, respectively.

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