HCLTech Q4 Results: Net profit drops 8% sequentially, margin expands but falls short of analysts expectations
HCLTech Q4 FY24 Results: HCLTech reported an 8.4 per cent fall in consolidated net profit to Rs 3,986 crore for the fourth and final quarter of the financial year 2023-24. HCLTech declared a dividend of Rs 18 per share with a record date of May 7.
HCLTech Q4 FY24 Results: Noida-headquartered HCLTech, the country's third largest IT company by market value, on Friday reported a consolidated net profit of Rs 3,986 crore for the quarter ended March 31, marking a decline of 8.4 per cent compared with the previous three months and falling short of analysts' expectations.
The IT firm registered 0.2 per cent sequential growth in revenue to Rs 28,499 crore for the January-March period, according to a regulatory filing.
Its quarterly revenue inched up 0.4 per cent to $3,430 million in dollar terms, while revenue in constant currency expanded 0.3 per cent.
According to Zee Business research, HCLTech's fourth-quarter net profit was estimated at Rs 4,220 crore and revenue at Rs 28,650 crore or $3,450 million. The analysts had expected constant currency revenue growth at 0.6 per cent.
The IT company logged Rs 5,024 crore in quarterly earnings before interest and taxes (EBIT), down 11 per cent sequentially. HCLTech's margin, a key measure of profitability, expanded by 780 basis points on a quarter-on-quarter basis to 17.6 per cent, but fell short of expectations.
Zee Business analysts had pegged the IT firm's March-quarter EBIT at Rs 5,250 crore and margin at 18.3 per cent.
“HCLTech continues to lead the industry in FY24 with good dollar revenue growth of 5.4 per cent YoY during challenging times through our strong commitment to our clients and our people," said C Vijayakumar, CEO and MD, HCLTech.
"As we look ahead, global enterprise technology spend will only grow with adoption of AI. We are well positioned to capitalize with our AI led propositions, Global delivery model and ideal mix of technology services and products," Vijayakumar added.
ALSO READ: HCLTech net income grows 5.7% to Rs 15,702 crore in FY24
HCLTech dividend
HCLTech declared a dividend of Rs 18 per share with a record date of May 7.
HCLTech guidance
HCLTech pegs constant currency revenue growth at 3-5 per cent and margin at 18-19 per cent for the financial year ending March 2025.
Zee Business analysts had expected the IT firm's revenue growth guidance at 6-8 per cent and margin guidance at 18-19 per cent.
HCLTech attrition
Attrition at the IT firm eased by 40 bps to 12.4 per cent compared with the October-December period.
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