17 Jan 2022 , 12:49 PM
IT-giant, HCL Technologies stock was under pressure on Monday after the company missed streets expectations in the financial performance for the quarter ending December 2021 (Q3FY22). HCL logged a 13.6% decline in consolidated net profit to Rs3,442cr compared to a profit of Rs3,969cr a year ago same period. The company’s latest PAT however rose by 5.4% on a sequential basis.
The company’s revenue from operations, on the other hand, increased by 15.7% to Rs22,331cr in Q3FY22 against Rs19,302cr in the corresponding period of the last year. Compared to the preceding quarter, the revenue increased by 8.1%.
EBITDA stood at Rs5,242cr in the quarter ending December of FY22, down by 3.7% yoy but grew by 8.3% on a qoq basis.
Net profit margin was at 15.4%, while EBITDA margin stood at 23.4% in Q3FY22.
On segment-wise performance, growth in constant currency, was double digit in IT Services AT 16.1% YOY. On qoq, the growth stood 5.3%.
Strong client addition across all categories. On YoY basis, $50 mn+ clients up by 11, $20 mn+ clients up
by 13, $10 mn+ clients up by 25, and $5 mn+ clients up by 34, $1 mn+ cients up by 50.
Further, hiring continued at a brisk pace with Net Addition of 10,143 during the quarter. Total headcount now at 197,777.
“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.”, said C Vijayakumar, Chief Executive Officer & Managing Director, HCL Technologies.
In its FY22 guidance, HCL Tech expects revenue to grow in double digits in constant currency for the fiscal. EBIT margin expected to be between 19% and 21% for FY’22.
Due to year-on-year decline in bottom-line front, HCL Tech stock nosedived on stock exchanges on the first day of this week’s trading session. HCL Tech has nosedived by nearly 7% with an intraday low of Rs1244 per piece so far today.
At around 12.46 pm, HCL Tech was trading at Rs1265.65 per piece down by Rs71.90 or 5.4% on Sensex.
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