HCL Tech Q1: Net profit slips 11.2% QoQ to Rs 3,534 crore

HCL Tech Q1: HCL Technologies reported on July 12 a consolidated net profit of Rs 3,534 crore for the quarter ended June 30, 2023 (Q1FY24). The company had posted a profit of Rs 3,983 crore in the previous quarter and Rs 3,283 crore in the year-ago period. On a sequential basis, the profit slipped by 11.2 per cent while on a year-on-year (YoY) basis, the figure grew by 7.6 per cent. Revenue from operations came in at Rs 26,296 crore, up 12 per cent YoY but down 1.16 per cent on a QoQ basis.

Both bottom-line and top-line figures missed Zee Business analysts' estimates. The research desk had projected the company to post consolidated revenue of Rs 26,750 crore, up 0.5 per cent on a sequential basis. Profit after tax (PAT) or net profit, was seen declining 3.1 per cent QoQ at Rs 3,860 crore against Rs 3,983 registered in the last quarter.

The company also declared an interim dividend of Rs 10 per equity share of Rs 2 each for the financial year 2023–24. The record date for the same has been fixed for July 20, 2023. The payment date of the said interim dividend shall be August 1, 2023, HCL Tech said in its earnings release.

HCLTech maintained its full-year revenue growth view of 6%-8% on a constant currency basis.

The company, which had new deal wins worth a total contract value of USD 1.57 billion in the quarter, said it was optimistic about deal pipeline conversion for the year.

The results come at a time when rival Tata Consultancy Services (TCS) topped quarterly profit estimates on the back of large order wins. However, unlike TCS's move to take a margin hit to reward employees, HCLTech has deferred annual pay reviews of its staff by a quarter.