HCL Tech Q3 net profit up 31%, crosses $10-bn revenue milestone in 2020

Riding the digitisation wave, HCL Technologies posted a powerful set of numbers for the December quarter, with net profit up 31.1 per cent year-on-year (yoy) at Rs 3,982 crore as in contrast with the corresponding quarter a year in the past. The net profit rose 26.7 per cent on a sequential foundation. The net revenue was additionally resulting from decrease tax bills, primarily resulting from reversal of tax provisions associated to prior years, in response to the company.

The Noida headquartered company’s consolidated revenue was up 6.4 per cent to Rs 19,302 crore yoy and three.8 per cent sequentially. The EBIT margin of the IT companies supplier expanded 265 foundation factors on a yoy foundation to 22.9 per cent in the October-December interval — a 24 quarter excessive.

The company’s revenue additionally crossed the $10-billion milestone in 2020, delivering 3.6 per cent YoY progress in fixed forex.

Revenue is predicted to develop 2-3 per cent in fixed forex for This autumn whereas Ebit outlook for FY21 is now elevated to a spread of 21-21.5 per cent, up from 20-21 per cent introduced beforehand.

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The company received 13 transformational offers throughout business verticals, together with life sciences and healthcare, know-how and monetary companies. It has categorised $25-million above companies offers as transformational offers. This reserving was 13 per cent increased than the December quarter of 2019 for the company.

“We continue to see a strong pipeline and are confident of further acceleration of bookings in the coming quarters. Our Mode 2 and Mode 3 businesses did a lot of heavy lifting during the quarter. Mode 2 revenues delivered 25 per cent yoy growth.

The robust performance in Mode 2 is driven by digital and cloud businesses which reflects the relevance in the completeness of our enterprise digital transformation propositions. It has proved its mettle this quarter,” stated C Vijayakumar, President & CEO, HCL Technologies.

The merchandise and platforms business grew 9.3 per cent yoy. It received 700 new buyer footprints through the quarter. Five out of seven verticals confirmed progress momentum, led by media and telecom.

The company additionally declared dividends of Rs 4 per share for the quarter.

HCL Tech sees all-time low attrition stage in Q3

HCL Technologies has stated that in the December quarter, attrition stage was at a historic low for the company at 10.2 per cent. It, nonetheless, expects it to inch up a bit of bit in the approaching quarters because the pandemic eases and there’s pent up demand in the market for these expertise.

As the company added a net headcount of 6,597 through the quarter, the full headcount has moved to 159,682. Though there was problem in hiring freshers in Q1 and Q2 due to the pandemic challenges, the company accelerated its freshers hiring in Q3 and added 4,022 workers. The IT agency plans so as to add one other 5,000 freshers in the March quarter.

“We significantly ramped up our training during this period. Our training hours have gone up by 81 per cent in this quarter which has resulted in an increase of our internal fulfilment by 10 per cent. That is also a reason which has helped our growth,” stated Varre Appa Rao, Chief Human Resources Officer on the company.

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