HCL Tech reports over three-fold rise in net profit at ₹3,593 crore

IT services company HCL Technologies on Thursday saw its net profit zoom to Rs 3,593 crore for quarter ended March 2022, and struck an optimistic note about "buoyant" market environment citing "strong momentum across verticals and service lines". The net profit was Rs 1,102 crore in the year-ago period.

HCL Tech expects revenue to grow between 12-14 per cent in constant currency for the fiscal 2023.

HCL Technologies Chief Executive Officer and Managing Director C Vijayakumar, during the earnings conference, said that market environment is "buoyant" and there is "strong momentum across verticals and service lines".

The company's revenue from operations for Q4 FY22 came in at Rs 22,597 crore, 15 per cent higher than a year ago.

The March quarter net profit at Rs 3,593 crore, was 4.4 per cent higher on a quarter-on-quarter basis. On a comparative basis, the net profit was up 23.9 per cent year-on-year.

"For comparison purposes, net income of Q4 FY'21 and full year FY'21 excludes the impact of one-time milestone bonus paid to employees (USD 78.8 million, Rs 575 crore net of tax) and the DTL (Deferred Tax Liabilities) on Goodwill impact in the tax expense (USD 165.1 million, Rs 1,222 crore) in Q4 FY'21," a company statement said.

These one-time aspects in Q4FY21 had depressed the net profit numbers.

For the full year FY22, the net income stood at Rs 13,499 crore against Rs 11,145 crore in the previous fiscal.

The revenue for the entire fiscal up to March 31, 2022 was Rs 85,651 crore, up from Rs 75,379 crore in FY21.

"We have delivered yet another stellar quarter in our services business, where the revenue is up 5 per cent quarter-on-quarter, up 17.5 per cent year-on-year in constant currency," Vijayakumar said.

The company's board has declared an interim dividend of Rs 18 per equity share of Rs 2 each for 2022-23.

"Our board is happy to announce a dividend of Rs 18 per share for the quarter, taking the payout for the year to Rs 44 per share..., 88.4 per cent of EPS (Earning Per Share), higher than guided range of 75 per cent," Prateek Aggarwal, Chief Financial Officer at HCL Technologies Ltd, said.

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