HCL Tech Q4 results 2018 key takeaways: From profit, attrition to dividend, what you must know

HCL Tech Q4 results 2018: HCL Technologies on Wednesday came out with disappointing set of numbers with HCL Tech share price plunging 5 per cent on the BSE. The IT major posted a 9.8 per cent decline in consolidated net profit at Rs 2,230 crore for the quarter ended March 2018 compared to the year-ago period. The country's fourth largest software services firm had registered a net profit of Rs 2,474 crore in the January-March 2017 quarter as per Indian Accounting Standards (Ind AS), HCL said in a BSE filing. The company's total income was up 2.2 per cent to Rs 13,480 crore in the quarter under review from Rs 13,183 crore in the corresponding quarter last year.

Here are key takeaways from HCL Tech Q4 FY18 results: 

Financials FY18 

For entire FY18, net profit grew 1.3 per cent to Rs 8,722 crore, while total income grew by 6.4 per cent to Rs 51,786 crore from the previous financial year.

FY19 Guidance

HCL Tech expects FY19 revenues to grow between 9.5 per cent to 11.5 per cent in Constant Currency terms. This guidance translates into 10.5 per cent to 12.5 per cent in USD terms based on March 31, 2018. Revenue Guidance is based on FY18 (April to March) average exchange rates. 

The operating margin (EBIT) for FY19 is expected to come in the range of 19.5 per cent to 20.5 per cent. The operating margin guidance assumes USD-INR currency rate of $1 = Rs 66 and other currencies at FY18 average exchange rates.

Dividends

The Board of Directors has declared an interim dividend of Rs 2 per equity share of Rs 2 each of the company for the Financial Year 2018-19. The Board of Directors has fixed May 10, 2018 as the record date for determining the entitlement of the shareholders to the aforesaid interim dividend. The Payment date of the said interim dividend shall be May 17, 2018.

Head count and attrition

At the end of March 2018, HCL had 1.2 lakh employees with a gross addition of 8,476 people. Its attrition for IT services (on last 12 month basis) was at 15.5 per cent.

Deals

During the quarter, HCL signed 15 transformational deals, led by verticals of financial services (up 13.3 per cent), manufacturing (up 18.3 per cent), public services (up 2.6 per cent), lifesciences and healthcare (up 8.1 per cent). 

Geographical growth

HCL Tech logged broad based growth across all revenue segments. Americas, RoW and Europe grew by 13.8 per cent, 6 per cent and 5 per cent, respectively, driven by engineering and R&D services at 37.6 per cent, infrastructure services at 4.5 per cent and application services at 4.4 per cent.