HCL Tech Q2FY23 PAT up 7.06% at Rs3,489cr on large deals and cloud focus

13 Oct 2022 , 06:24 AM

HCL Tech reported 19.52% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs24,686cr. Revenue growth was 3.8% in constant currency terms. Sequential revenues were up 5.21%.

In constant currency terms, the revenues were up 18.9% yoy. During the quarter, HCL Tech won 11 large deals with 9 in services and 3 in products. The total contract value (TCV) of new bookings stood at $2.384 billion up 16% sequentially and 6% on a yoy basis.

Over the last 4 years, the revenues have grown at CAGR of 10.2%. On a yoy basis, IT Services which accounts for 73.6% of revenues, grew 18.2% while the Engineering & R&D services accounting for 17% revenues, grew by 22.3%.

Profit after tax (PAT) for September 2022 quarter was up 7.06% at Rs3,489cr on improved operating performance.

While EBIT margins were up 93 bps sequentially at 18%, the net margins were up 13 bps sequentially at 14.1% in Q2FY23. Operating cast flows were 1145 of total income. While the services revenue guidance for FY23 is 16-17%, the overall revenue guidance has been hiked to 13.5-14.5% for FY23.

EBIT margin guidance stands at 18-19%. Among verticals, the Engineering & R&D services had OPM of 21.4% and IT services had OPM of 16.7% in Q2FY23. HCL Tech declared interim dividend of Rs10 per share.

Financial highlights for Sep-22 compared yoy and sequentially

	HCL Tech
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 24,686	₹ 20,655	19.52%	₹ 23,464	5.21%
Operating Profit (Rs cr)	₹ 4,427	₹ 3,944	12.25%	₹ 3,992	10.90%
Net Profit (Rs cr)	₹ 3,489	₹ 3,259	7.06%	₹ 3,283	6.27%
Diluted EPS (Rs)	₹ 12.88	₹ 12.01		₹ 12.12
OPM	17.93%	19.09%		17.01%
Net Margins	14.13%	15.78%		13.99%