HCL Tech took just 9 months to cross its annual revenue target of $10 billion

HCL Tech took just 9 months to cross its annual revenue target of $10 billion
HCL Tech's December quarter results are now out.BCCL
  • HCL Technologies beat market expectations to report a nearly 27% increase in profit for the December quarter.
  • The IT services giant also crossed the $10 billion revenue milestone for the year, which the company’s president termed as a ‘pivotal milestone’.
  • HCL Tech’s acquisition of Australian IT major DWS has contributed to the company enhancing its revenue guidance for FY21.
  • Overall, the company has reported 13 new deal signings in the December quarter across industry verticals.
India’s third largest IT services company by market capitalization, HCL Tech has posted a strong quarter, in-line with its peers. It has reported an increase of 26.7% in net income and 3.8% in revenue in the December quarter.

Revenue for the December quarter stood at ₹19,302 crore, while profit stood at ₹3,982 crore. On a year-on-year basis, revenue and profits increased by 6.4% and 31.1% respectively.

HCL Tech also reported a robust expansion in its margins, with EBITDA growing by 155 basis points, standing at 28.2% for the quarter. This margin expansion also comes amid partial rollout of wage hikes. 100 basis points make up 1%.

Advertisement
EBITDA stands for earnings before interest, tax, depreciation and amortisation.

HCL Tech reported that it has crossed the $10 billion revenue milestone for FY21, with one more quarter to go.

DWS adds to the jump in revenue guidance for FY21

Apart from this, the company also revised its revenue guidance for the full year FY21, raising it to 2-3% in constant currency terms. In the previous quarter, HCL Tech had forecast an increase of 1.5-2.5%. The guidance boost includes contribution from DWS, a leading Australian IT services company.
Advertisement


HCL Technologies also sees the margin in the range of 21-21.5% for fiscal year 2021.

Piggybacking on the post-COVID boost in IT services as companies jump on the cloud computing bandwagon, HCL Tech reported that it has signed up 13 new deals across life sciences, healthcare, technology and financial services. This also

HCL Tech also reported a significant reduction in attrition by 667 basis points, now standing at 10.2%.
Advertisement

Shares of HCL Tech have jumped by over 16% in the December quarter. However, almost all of the jump was witnessed in December alone, which accounted for a 15% increase.

HCL Tech took just 9 months to cross its annual revenue target of $10 billion
HCL Tech share price in the December quarterBSE / Business Insider India / Flourish

“The technology sector is in the midst of a massive digitization wave, with more global enterprises embracing digital transformation to address the disruption of these unprecedented times,” said Shiv Nadar, Chief Strategy Officer, HCL Technologies.

Advertisement
“I am also delighted to share that we crossed $10 billion in revenues in 2020. This is a pivotal milestone for us as a company and is a result of HCL’s vision, our employees’ passion and disciplined execution,” said C Vijayakumar, President & CEO, HCL Technologies.

HCL Tech has declared an interim dividend of ₹2 per share.

SEE ALSO:

Here’s why Infosys and Wipro shares fell despite good earnings

Infosys reports record $7.13 billion deal wins — raises revenue guidance after its best December quarter in eight years

Wipro has clocked in its highest margin in over five years
{{}}