HCL Tech Q4FY23 PAT up 10.9% at Rs3,983cr as operating costs pinch

HCL Tech reported 17.7% growth in total revenues for the March 2023 quarter on consolidated basis at Rs26,606cr. Revenue growth was up 10.5% yoy in constant currency (CC) terms but 1.2% lower in sequential terms. For Q4FY23, the software revenues were up 8.2% in CC terms while the digital revenues were up 16.9% yoy in CC terms. Digital revenues accounted for 37.5% of overall HCL Tech service revenues. It won 13 large deals in Q4 with total contract value (TCV) of $2.07 billion.

For FY24, HCL Tech cross the Rs1 trillion revenues for the first time ever, with CC revenues up 13.7%. Full year digital revenues were up 26.5% and accounted for 37.4% of overall revenue flows. The LTM attrition rate stood at 19.5% for the full year. In terms of guidance for FY24, HCL Tech has guided overall revenue growth in the range of 6% to 8% in CC terms and service revenue growth in the range of 6.5% to 8.5% in CC terms. The operating margin guidance for FY24 is in the range of 18% to 19%.

Financial highlights for Mar-23 compared yoy and sequentially

 HCL Tech    

Rs in Crore






Total Income (Rs cr)

₹ 26,606

₹ 22,597


₹ 26,700


Operating Profit (Rs cr)

₹ 4,836

₹ 4,069


₹ 5,228


Net Profit (Rs cr)

₹ 3,983

₹ 3,593


₹ 4,096








Diluted EPS (Rs)

₹ 14.69

₹ 13.26


₹ 15.11








Net Margins







Consolidated Profit after tax (PAT) for March 2023 quarter was up 10.85% at Rs3,983cr on operating cost pressures. Operating margins held above the 18% mark, despite cost pressures in the quarter. EBIT was up 14.1% yoy while the return on invested capital (ROIC) was up 150 bps at 30.4%. The free cash flows (FCF) stood at 110% of net income for the full year. The company has also declared and paid out a full year dividend of Rs48 per share.

The total manpower count of HCL Tech as of the end of March stood at 2.26 lakhs with 3,674 net additions in the last quarter. The company has also onboarded 4,480 freshers in the fourth quarter. In terms of revenue mix for FY23, IT and business services accounted for 73.8%, engineering and R&D services at 16.1% with the balance to HCL Software.

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