HCL Tech clocks 8% y-o-y growth in net profit at Rs 3,534 crore in Q1FY24; stock slips ~2%

13 Jul 2023 , 09:34 AM

HCL Technologies Limited announced its results for the quarter ending June 2023. The company’s counter fell as much as 2% in early morning trade as the company missed street estimates despite posting 8% y-o-y growth in consolidated net profit for the quarter.

At around 9.20 AM, HCL Tech was trading 1.44% higher at Rs 1,094.55 per piece, against the previous close of Rs 1,110.55 on NSE.

The company posted a consolidated revenue of Rs 26,296 crore in quarter ending June 2023, registering a growth of 12% y-o-y against the previous corresponding quarter.

Further, the board of directors of the company also proposed an interim dividend of Rs 10 per share. The record date for payment of the same has been fixed as July 20.

On a QoQ basis, the topline fell by 1.2%, and the bottom line by 11.3%. The operating margin, calculated as earnings before interest and taxes (EBIT), shrank by 110 basis points to 17%. Margins were unchanged on a year-on-year basis.

Meanwhile, HCLTech’s attrition rate for the quarter was 16.3%, down from 19.5% the previous quarter. The 12-month trailing attrition rate is 16.3%, down from 19.5% in the previous quarter.

While key verticals such as financial services, manufacturing, lifesciences and healthcare saw strong YoY growth, sequential growth moderated, indicating a slowdown in client technology spending.

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