HCL Tech reports 10% profit growth in Q2FY24

HCL Technologies, India's third-largest IT services company, revealed a 10% increase in profit during the second quarter, despite continued macroeconomic challenges. The company reported a net profit of ₹3,832 crore for Q2FY24, up from ₹3,487 crore in the same period of the previous fiscal year.

 

The Board of Directors of HCL Tech announced an interim dividend of ₹12 per equity share with a face value of ₹2. The record date for the dividend payment has been set for October 20, 2023, and shareholders can expect to receive the dividend on October 31, 2023.

 

C. Vijayakumar, CEO and MD of HCL Technologies, commented on the company's performance, highlighting a 1.0% quarter-on-quarter and 3.4% year-on-year revenue growth in constant currency. He also noted a 154 bps quarter-on-quarter improvement in operating margin and strong cashflows. The company secured new bookings of $4 billion in the quarter, reaching an all-time high.

 

Despite the positive results, HCLTech revised its full-year revenue growth outlook for fiscal 2024, expecting organic growth to be between 4-5% year-on-year in constant currency terms, down from the previously expected 6-8%. This adjustment reflects near-term uncertainty in spending due to cautious clients and a challenging macroeconomic environment.

 

In July, HCLTech announced its acquisition of automotive engineering services firm ASAP Group for $280 million. Consolidated revenue from operations increased by over 8% to ₹26,673 crore.

 

HCLTech's performance comes amid similar concerns in the IT industry, with Infosys and TCS adjusting their revenue outlooks due to uncertain demand and challenges in the market.

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