HCL Technologies Ltd. recently reported robust growth in their first quarter results for the financial year 2024-25. The IT major witnessed a remarkable 20.45% increase in net profit, reaching Rs 4,257 crore compared to Rs 3,534 crore in the same quarter the previous year. The company’s revenue from operations also soared by 6.69% to Rs 28,057 crore in Q1FY2025, surpassing market expectations.
HCLTech reaffirmed its projections for revenue growth in constant currency terms and operating margin for the fiscal year ending March 2025. The company anticipates a 3-5% rise in revenue in constant currency terms for the year 2024-25, with an expected EBIT margin of 18-19% for the period. This positive outlook is crucial in sustaining the company’s growth trajectory and market position.
In a recent statement to the exchanges, HCL Technologies highlighted their strong performance exceeding market estimates. The company reported a net profit of Rs 4,259 crore for the April-June quarter, representing a nearly 7% sequential increase. This impressive growth was primarily driven by divestment gains, including the UK subsidiary’s equity divestiture in a joint venture with State Street International Holdings.
While the revenue of the IT major experienced a 1.6% decline to Rs 28,057 crore in the quarter ended June, the company remains optimistic due to the planned impact of the State Street divestiture in the ongoing financial year. HCLTech’s CEO, C Vijayakumar, emphasized, “Including the impact, we remain comfortable with our full-year revenue and margin guidance as clients invest in Gen AI and other emerging technologies.”
Moreover, the company’s board announced an interim dividend of Rs 12 per share for the financial year 2024-25. This strategic decision aligns with HCLTech’s commitment to enhancing capital efficiency and rewarding shareholders. The company’s consistent efforts towards improving efficiency and capital utilization are reflected in the solid results and financial performance.
Looking ahead, HCL Technologies is poised for continued growth with a focus on delivering revenue guidance for the year. With a strong portfolio of services and a commitment to leveraging emerging technologies like GenAI, the company remains confident in its ability to sustain growth in the competitive IT landscape. Overall, HCLTech’s Q1 results and maintained guidance bode well for its future prospects and market positioning.
