HCL Tech Q1 Results: Net Profit Up 2.4% YoY To Rs 3,283 Crore; Revenue Up 16.9%; Dividend Declared

HCL Tech Q1 Results: IT major HCL Technologies on Tuesday reported a jump of 2.4 per cent year-on-year in its net profit to Rs 3,283 crore in the June 2022 quarter, against Rs 3,213 crore in the corresponding quarter last year. Its revenue from operations during April-June 2022 rose 16.9 per cent year-on-year to Rs 23,464 crore, compared with Rs 20,068 crore in the year-ago period.

HCL’s board of directors has also declared an interim dividend of Rs 10 per equity share of Rs 2 each of the company for the financial year 2022-23. “The Record date of July 20, 2022, fixed for the payment of the aforesaid interim dividend has been confirmed by the Board of Directors. The Payment date of the said interim dividend shall be August 2, 2022,” according to a BSE filing.

Analysts expected HCL Tech to post revenue growth of 2.9 per cent quarter-on-quarter on a constant currency basis for the June 2022 quarter even as strong revenue growth is offset by productivity commitments, whereas its profit after tax (PAT) is likely to decline 7.9 per cent.

In the March 2022 quarter, HCL Technologies had reported a multifold jump, or 226 per cent, in its net profit to Rs 3,593 crore, compared with Rs 1,102 crore in the corresponding quarter last year. The company’s revenue during January-March 2022 rose 15.1 per cent to Rs 22,597 crore, compared with Rs 19,641 crore in the year-ago period. In dollar terms, its revenue had jumped 11 per cent year-on-year to USD 2,993.1 in the March 2022 quarter, compared with $2,695 a year ago.

For the IT sector as a whole, BNP Paribas said that in a weakening demand environment, it sees large-scale companies to outperform. “Accordingly, our top picks are Infosys and TCS. We are building in a gradual moderation in IT demand and accordingly cut our FY23-25E USD revenue growth by 0-4.5 per cent and margin estimates by 0-150 bp. We also raise our WACC assumptions to reflect the higher cost of equity. This results in our FY23-25E EPS cuts by 0-16 per cent and TP cuts by 5.9-42.1 per cent.”

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