HCL Tech beats guidance — clocks-in 4.5% jump in revenue during second quarter

• HCL Tech has beaten guidance with a 4.5% jump in revenue and a 7.4% increase in profits between July and September.
• In the second quarter, the companies raked in 15 ‘transformational deals’ led by life sciences and healthcare, public services and manufacturing.
• It will be doling out a dividend of ₹4 per share.

HCL Tech has beaten guidance to clock-in 4.5% growth in revenue in constant currency during the second quarter. Its profit also rose by 7.4% between July and September to hit ₹3,142 crore.

The company’s EBIT margins in rupees also expanded by a whopping 9.7% to hit 21.6%.

"This growth momentum was driven by our continued leadership in Digital Transformation and Cloud businesses and a strong stability in the Products & Platforms segment, all of which continue to open diverse growth avenues for us,” said HCL Tech CEO C Vijayakumar.

For the second half of the year, HCL has guided that revenue will grow quarter-on-quarter (QoQ) between 1.5% to 2.5%. The annual EBIT margin guidance is between 20% to 21%.

IT and business services continue to account for most of the company’s growth, accounting for over 70% of the revenue mix. “HCL signed 15 transformational deals, led by key industry verticals including life sciences and healthcare, public services (energy & utilities) and manufacturing,” the company said in its earnings report.

In its 71st consecutive quarter giving a dividend, this quarter, HCL Tech has declared a dividend of ₹4 per share.

It also reported a drop in attrition — falling by 470 basis points to 12.2%. One hundred basis points make up 1%.