HCL Tech Q1 net falls 8.6% sequentially to Rs 3,283 cr, declares dividend

The company's consolidated revenue grew 4% sequentially at Rs 23,464 cr in the June quarter

IT services major HCL Technologies on Tuesday reported 8.6% sequential decline in consolidated net profit at Rs 3,283 crore for the quarter ending June 2022. It reported consolidated net profit of Rs 3,593 crore in the previous quarter. On annual basis, HCL Tech's net profit rose 2.4%.

The company's consolidated revenue grew 4% sequentially at Rs 23,464 crore in the June quarter and nearly 17% higher on an annual basis. The company declared interim dividend of Rs 10 per equity share of Rs 2 face value. In its FY23 guidance, the company said revenue is expected to grow between 12-14% in constant currency terms.

“As technology becomes central to lives and businesses, HCL is accelerating the digital transformation journeys of its clients. We continue to pursue our growth strategy with a sense of purpose and responsibility toward our stakeholders and communities,” said Roshni Nadar Malhotra, Chairperson, HCL Technologies Ltd.

“We have started FY’23 on a strong note with an overall growth of 2.7% QoQ and 15.6% YoY in Constant Currency. Our services business continues to have robust growth momentum, growing at 2.3% QoQ and 19.0% YoY in constant currency, driven by our digital engineering and digital application services with cloud adoption being a horizontal theme across all services and verticals," said C Vijayakumar, CEO & Managing Director, HCL Technologies Ltd. 

“Our new bookings grew 23.4% YoY supported by a good mix of large and mid sized deals and our pipeline remains near record high. Our operating margin came in at 17.0%. We have put in place the right measures that will improve our profitability going forward," he added.

On Tuesday, the company's stock on BSE closed trading nearly 2% lower at Rs 926.10.