HCL Tech for the quarter ended Dec 2021 registered a consolidated sales of Rs 22331 crore, a growth of just 8.1% QoQ and 15.7% yoy basis. On USD terms the revenue for the quarter was up by 6.7%QoQ basis and 13.8% YoY basis. Eventually the net profit (after MI) was Rs 3442 crore, a growth of 5.6% QoQ.
Consolidated quarterly performance QoQ comparison
Net sales (including other operating income) of HCL Technologies has increased 8.11% to Rs 22331 crore.
Operating profit margin has declined from 24.31% to 24.15%, leading to 7.39% rise in operating profit to Rs 5,393.00 crore. Purchase of finished goods cost rose from 1.32% to 1.92%. Employee cost decreased from 53.38% to 52.81%. Other expenses rose from 20.96% to 21.15%. Contract job process charges rose from 14.93% to 14.94%.
Other income rose 6.25% to Rs 255 crore. PBIDT rose 7.34% to Rs 5566 crore. Provision for interest fell 1.20% to Rs 82 crore.
PBDT rose 7.47% to Rs 5566 crore. Provision for depreciation rose 5.38% to Rs 1136 crore.
Profit before tax grew 8.02% to Rs 4,430.00 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 982 crore, compared to Rs 838 crore. Effective tax rate was 22.17% compared to 20.43%.
Minority interest increased 50% to Rs 6.00 crore. Net profit attributable to owners of the company increased 5.62% to Rs 3,442.00 crore.
Consolidated quarterly performance YoY comparison
Net sales (including other operating income) of HCL Technologies has increased 15.69% to Rs 22331 crore.
Operating profit margin has declined from 29.14% to 24.15%, leading to 4.11% decline in operating profit to Rs 5,393.00 crore. Purchase of finished goods cost fell from 2.87% to 1.92%. Employee cost increased from 48.82% to 52.81%. Other expenses rose from 19.24% to 21.15%. Contract job process charges rose from 13.52% to 14.94%.
Other income rose 34.92% to Rs 255 crore. PBIDT fell 2.84% to Rs 5648 crore. Provision for interest fell 44.22% to Rs 82 crore.
PBDT fell 1.76% to Rs 5566 crore. Provision for depreciation fell 4.30% to Rs 1136 crore.
Profit before tax down 1.09% to Rs 4,430.00 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 982 crore, compared to Rs 502 crore. Effective tax rate was 22.17% compared to 11.21%.
Minority interest decreased 25% to Rs 6.00 crore. Net profit attributable to owners of the company decreased 13.28% to Rs 3,442.00 crore.
Consolidated year-to-date performance.
Net sales (including other operating income) of HCL Technologies has increased 13.13% to Rs 63054 crore.
Operating profit margin has declined from 27.81% to 24.55%, leading to 0.14% decline in operating profit to Rs 15,477.00 crore. Purchase of finished goods cost fell from 2.44% to 1.62%. Employee cost increased from 50.15% to 53.15%. Other expenses rose from 19.63% to 20.69%. Contract job process charges rose from 13.47% to 14.75%.
Other income rose 9.81% to Rs 750 crore. PBIDT rose 0.28% to Rs 16227 crore. Provision for interest fell 27.84% to Rs 254 crore.
PBDT rose 0.90% to Rs 15973 crore. Provision for depreciation fell 0.06% to Rs 3342 crore.
Profit before tax grew 1.16% to Rs 12,631.00 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 2707 crore, compared to Rs 2428 crore. Effective tax rate was 21.43% compared to 19.45%.
Minority interest increased 20% to Rs 18.00 crore. Net profit attributable to owners of the company decreased 1.36% to Rs 9,906.00 crore.
Promoters stake was 60.33% as of 31 December 2021 ,compared to 60.33% as of 31 December 2020 .
Others:
Dividend: The company has declared a dividend of Rs 10 per share .
Management Commentary:
Commenting on the performance Roshni Nadar Malhotra, Chairperson, HCL Technologies said We are in the disruption phase of our lives, and the world has been dramatically reshaped and transformed. Technology has become all pervasive, in our homes, and livelihoods, and is the epicenter of our lives. Our HCL family has been a catalyst in this change and is helping global enterprises embrace digital transformation, with a unique blend of products and services. As the global economy revives and we emerge from this crisis, we will continue to meet future challenges armed with our core beliefs of innovation and invention, driven by a strong faith in humanitarian values.
C Vijayakumar, Chief Executive Officer & Managing Director, HCL Technologies said We have delivered all round stellar performance this quarter with a revenue growth of 7.6% in constant currency QoQ, the highest recorded in the last 46 quarters. Our Products & Platforms segment led the growth with 24.5% followed by Engineering and R&D Services with 8.3% and IT & Business Services with 4.7%, all in QoQ cc. Our future looks bright as we had a very strong net new booking of $ 2.1B, a 64% YoY increase. We also added more than 10,000 to our employee strength this quarter. I believe we continue to be in a vantage position to address sustained demand momentum as our investments on strategic priorities like digital, cloud & engineering capabilities and our talent development plans are showing strong returns.
Prateek Aggarwal, Chief Financial Officer, HCL Technologies said This was clearly a quarter of record growth. Revenue achievement was at $ 2,977 Mn, up 7.6% QoQ & 15.0% YoY in constant currency. Profitability was maintained at EBITDA of 24.2% and EBIT of 19.1% (both Ind AS). Net Income Margin for the quarter was 15.4%. Free Cash Flow (FCF) increased 33.7% QoQ at $ 521 Mn, 114% of Net Income. LTM FCF is at 102% of Net Income. We closed the quarter with Gross Cash at $ 2.7 Bn and Net Cash at $ 2.1 Bn, despite higher dividend payout, purchase of shares by the RSU Trust and acquisition of balance shareholding in Actian during the quarter.
HCL Technologies: Consolidated Financial Results
| 2112 (3) | 2109 (3) | Var. (%) | 2012 (3) | Var. (%) | 2112 (9) | 2012 (9) | Var. (%) | 2103 (12) | 2003 (12) | Var. (%) | |
| Sales | 22331 | 20655 | 8.1 | 19302 | 15.7 | 63054 | 55738 | 13 | 75379 | 70676 | 7 |
| OPM (%) | 24.15 | 24.31 | – 16 bps | 29.14 | – 499 bps | 24.5 | 27.8 | -326 bps | 26.6 | 24.5 | 210 bps |
| OP | 5393 | 5022 | 7.39 | 5624 | -4 | 15477 | 15499 | 0 | 20048 | 17316 | 16 |
| Other inc. | 255 | 240 | 6 | 189 | 35 | 750 | 683 | 10 | 927 | 589 | 57 |
| PBIDT | 5648 | 5262 | 7.34 | 5813 | -2.84 | 16227 | 16182 | 0 | 20975 | 17905 | 17 |
| Interest | 82 | 83 | -1 | 147 | -44 | 254 | 352 | -28 | 511 | 505 | 1 |
| PBDT | 5566 | 5179 | 7 | 5666 | -2 | 15973 | 15830 | 1 | 20464 | 17400 | 18 |
| Dep. | 1136 | 1078 | 5 | 1187 | -4 | 3342 | 3344 | 0 | 4611 | 3420 | 35 |
| PBT | 4430 | 4101 | 8.02 | 4479 | -1.1 | 12631 | 12486 | 1 | 15853 | 13980 | 13 |
| Tax | 982 | 838 | 17 | 502 | 96 | 2707 | 2428 | 11 | 4684 | 2923 | 60 |
| PAT | 3448 | 3263 | 6 | 3977 | -13 | 9924 | 10058 | -1 | 11169 | 11057 | 1 |
| MI | 6 | 4 | 50 | 8 | 18 | 15 | 24 | 0 | |||
| Net Profit | 3442 | 3259 | 5.6 | 3969 | -13.3 | 9906 | 10043 | -1 | 11145 | 11057 | 1 |
| EPS (Rs)* | 50.7 | 48.0 | 58.5 | 48.6 | 49.3 | 41.1 | 40.7 | ||||
| * On current Paid up equity capital of Rs 543 crore, Face value Re 2 Figures in crore EO: Extraordinary items EPS is adjusted after EO and relevant tax Source: Capitaline Databases |
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