HCL Technologies Q3 net down -13.28% at Rs3,442cr on sharply higher manpower and outsourcing costs

14 Jan 2022 , 08:57 PM

HCL Technologies reported 15.69% yoy growth in total revenues for the Dec-21 quarter on consolidated basis at Rs22,331cr. On a sequential basis, the revenues were up by 8.11%.

During the December 2021 quarter, the IT services revenues were up 5.3% sequentially while the consulting revenues were up 16.1% sequentially. In the overall business, IT and business services accounted for 70.6% while engineering and R&D services accounted for 15.9% while products and platforms accounted for the balance 13.5%.

For the Dec-21 quarter, the EBITDA was down -5.4% on a yoy basis while the EBIT was also down 5.5% on yoy basis. Both the EBITDA and the EBIT were around 6.8% to 7% higher on sequential basis.

The EBITDA at Rs.698 crore implies an EBITDA margin of 23.4% while the EBIT at Rs.566 crore implies an EBIT margin of 19%. Operating margins are flat on a sequential basis but down nearly 393 bps on a yoy basis due to higher manpower and sharply higher outsourcing costs.

Net Profit after tax (PAT) for the Dec-21 quarter was down -13.28% yoy at Rs3,442cr on the back of higher operating costs pertaining to manpower and outsourcing charges payable.

The operating profit pressures got transmitted to the PAT margins also. PAT margins narrowed from 20.56% in the Dec-20 quarter to 15.41% in the Dec-21 quarter. The company has guided for operating margins at 19-21% range for the full year.

Financial highlights for Dec-21 compared yoy and sequentially

	HCL Technologies
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 22,331	₹ 19,302	15.69%	₹ 20,655	8.11%
Operating Profit (Rs cr)	₹ 4,257	₹ 4,437	-4.06%	₹ 3,944	7.94%
Net Profit (Rs cr)	₹ 3,442	₹ 3,969	-13.28%	₹ 3,259	5.62%
Diluted EPS (Rs)	₹ 12.69	₹ 14.63		₹ 12.01
OPM	19.06%	22.99%		19.09%
Net Margins	15.41%	20.56%		15.78%