HCL Tech Q3 Results: Profit beats analysts' estimates; IT firm trims revenue, margin guidance

HCL Tech -- India's third largest IT services company by market value -- on Thursday reported a net profit of Rs 4,096 crore for the quarter ended December 2022, beating analysts' estimates. The net profit grew 17.4 per cent on a sequential basis.

The software services company's revenue came in at Rs 26,700 crore for the three-month period, up 8.2 per cent on a quarter-on-quarter basis, according to a regulatory filing.

Both topline and bottomline exceeded analysts' estimates. According to Zee Business research, HCL Tech's quarterly net profit was estimated at Rs 3,850 crore and revenue at Rs 26,400 crore.

“We have delivered a strong performance this quarter across all key metrics – revenue growth, margin expansion, booking growth and people metrics," said C Vijayakumar, CEO and Managing Director, HCL Tech.

"We are confident to deliver industry leading growth over the medium term supercharged by our positioning, our strong propositions and our passionate people,” he added. 

HCL Tech said its revenue in constant currency terms grew five per cent sequentially. In dollar terms, revenue increased 5.3 per cent to $3,244 million.

The IT company trimmed its revenue growth forecast to 13.5-14 per cent and margin guidance to 18-18.5 per cent for the year ending March 2023 -- both in constant currency terms. In the previous quarter, HCL Tech had guided for revenue growth of 13.5-14.5 per cent and margin of 18-19 per cent. 

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The Noida-based IT company declared a dividend of Rs 10 per share. That marked its 80th consecutive quarter of dividend payouts, according to a company statement. 

Attrition at HCL Tech eased to 21.7 per cent in the December quarter from 23.8 per cent in the previous three months, according to the company. The IT firm saw net addition of 2,945 to its workforce during the quarter, taking its headcount to 2,22,270.

HCL Tech shares ended with a gain of Rs 17.1 or 1.6 per cent at Rs 1,071.9 apiece on BSE ahead of the earnings announcement.

The stock rewarded investors with a return of 6.8 per cent in the quarter ended December 2022, a period in which the Sensex benchmark rose 5.9 per cent. 

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