HCL Tech gains as Q2 PAT rises 6% QoQ to Rs 3,489 cr

13 Oct 2022 , 10:52 AM

Compared with Q2 last year, net income rose 7.09% while topline jumped 19.5% in the second quarter. EBITDA increased by 9.05% to Rs 5,425 crore in Q2 FY23 from Rs 4,975 crore in Q1 FY23. EBITDA margin in Q2 FY23 improved to 22% as against 21.2% in Q1 FY22. EBIT margin stood at 18%, up 93 bps QoQ. In dollar terms, the companys revenue stood at $3,082 million, up 1.9% QoQ and up 10.4% YoY. In constant currency (cc) terms, revenue growth in Q2 FY23 was 3.8% QoQ and 15.8% YoY. For FY23, the company increased revenue guidance to 13.5%-14.5% YoY in constant currency. Services revenue is expected to grow 16%-17% YoY in constant currency. EBIT margin guidance is revised to 18%-19%. In Q2 FY23, total contract value (TCV) of new deal wins was at $2,384 million, registering a growth of 16% QoQ and 6% YoY. During Q2, services business grew 5.3% QoQ cc and 18.9% YoY cc. Engineering and R&D Services grew 5% QoQ cc and 22.3% YoY cc. IT and Business Services grew at 5.3% QoQ cc and 18.2% YoY cc. Growth momentum was led by Telecom, Media, Publishing & Entertainment (27.1%), Technology & Services (26.6%), Manufacturing (21.8%), Public Services (17.6%), Financial Services (15.4%), Lifesciences & Healthcare (14.4%) and Retail & CPG (11.9%) YoY in constant currency. Geographical growth boosted by Europe (21.8%), Americas (18.2%) and ROW (13.7%) YoY in cc. Employee benefits expense in Q2 FY23 stood at Rs 13,474 crore, up 3.82% QoQ and up 22.3% YoY. Total headcount stood at 219,325, up 3.96% QoQ and up 16.89% YoY. Attrition (on the last 12-month basis) was at 23.8% in Q2 FY23 as against 15.7% in Q2 FY22, while it remained constant on a sequential basis. C Vijayakumar, CEO & managing director of HCL Technologies, said: ?HCL Tech has delivered yet another solid performance this quarter with revenue growing at 3.8% QoQ and 15.8% YoY in constant currency and EBIT at 18% up 93 bps QoQ. Our services business grew 5.3% QoQ and 18.9% YoY in constant currency, led by strong demand for Cloud, Engineering and Digital services. This is a validation of the strategic choices we made and the effectiveness of our operational framework. Our bookings and pipeline continue to be very strong, that augurs well for our future growth. These reflect our constant and continuing efforts to supercharge outcomes for all our stakeholders. Our new brand positioning of supercharging progress has been well received and I am confident will help us deliver on our strategic priorities.? Prateek Aggarwal, chief financial officer of HCL Technologies, said: ?The highlight of the quarters performance is growth of 19.5% YoY, with Revenue at &8377; 24,686 Crore. EBIT has increased 12.3% and PAT has increased 7.1% YoY. We have significantly improved EBIT margins sequentially, led by operating leverage and efficiencies, despite impact of salary increments for the largest section of our people. Our H1 growth & deal wins lead us to increase our revenue guidance to 16% to 17% for services and 13.5%-14.5% at company level, reflective of our strong growth visibility. Our EBIT guidance is now in a narrower range of 18% to 19%. Our cash flow generation continues to be robust with operating cash flow (OCF) at US$ 2,049 million, being 114% of net income.? Meanwhile, the board has declared an interim dividend of Rs 10 per equity share for the financial year 2022-23. The record date is fixed on 20 October 2022. The payment date of the said interim dividend shall be 2 November 2022. HCL Technologies (HCL) empowers global enterprises with technology for the next decade, today. HCL offers its services and products through three business units: IT and Business Services (ITBS), Engineering and R&D Services (ERS) and Products & Platforms (P&P).Powered by Capital Market – Live News