October 28, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

HCL Tech Q2 results: Consolidated PAT rises 1.7% QoQ, beats estimate; Co to pay Rs 10 dividend

MUMBAI: HCL Technologies today reported a 1.7 per cent sequential rise in consolidated net profit to Rs. 3,259 crore for the quarter ended September, which was slightly higher than analysts’ expectations.

The company’s consolidated revenues in the reported quarter climbed 2.9 per on-quarter to Rs. 20,655 crore, which was below Street’s estimate.

The company’s board also approved an interim dividend of Rs 10 per share for the shareholders.

In constant currency terms, the Noida-based IT major’s revenues grew 3.5 per cent on-quarter. ’s dollar revenues climbed 2.6 per on-quarter to $2.79 billion.

The company also retained its guidance of double-digit growth in revenues in 2021-22 and an operating margin of 19-21 per cent.

“We have delivered a healthy performance this quarter marked by strong growth across our services portfolio led by our Digital Business, Engineering and Cloud Services,” said C Vijayakumar, chief executive officer and managing director at HCL Technologies.

The company’s deal wins momentum in the quarter picked up as it secured 14 large deals worth $2.3 billion. HLC Tech’s deal wins in the reported quarter are higher than that of peer Infosys. “Our robust pipeline and continued strong employee ramp up augurs well for our business momentum going forward,” Vijayakumar said.

On the operating front, the company’s performance suffered likely due to higher wage expenses and cross-currency headwinds in the quarter. HCL Tech’s consolidated earnings before interest and tax fell 0.4 per cent sequentially to Rs. 3,916 crore, while its EBIT margins shrank 60 basis points to 19 per cent.

The attrition rate in the quarter jumped to 15.7 per cent in the September quarter from 11.8 per cent in the previous quarter reflecting the ongoing supply-side challenges in the sector.

Shares of HCL Tech ended 1.5 per cent lower at Rs. 1,246 on the National Stock Exchange.

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