HCL Technologies reported 17.4% rise in consolidated net profit to Rs 4,096 crore on a 8.2% increase in revenues to Rs 26,700 crore in Q3 FY23 over Q2 FY22.
Compared with Q3 last year, the company's net profit and revenue are higher 19% and 19.6%, respectively.
EBITDA in Q3 FY23 was Rs 6,365 crore, up 18.1% YoY and up 17.3% QoQ. EBITDA margin was 23.9% for the quarter ended December 2022 as against 22% for the quarter ended September 2022 and 24.1% for the quarter ended December 2021.
In dollar terms, the company's revenue stood at $3,244 million, up 5.3% QoQ and up 9% YoY. In constant currency (cc) terms, revenue growth in Q3 FY23 was 5% QoQ and 13.1% YoY.
For FY23, the company's revenue guidance is 13.5%-14.0% YoY in constant currency. Services revenue is expected to grow 16%-16.5% YoY in constant currency. EBIT margin guidance has been narrowed to 18%-18.5%.
In Q3 FY23, the company bagged 17 large deals - 7 in the Services segment & 10 in the Software segment. Total contract value (TCV) of new deal wins was $2,347 million, registering a growth of 10% YoY.
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Total headcount stood at 222,270 as on 31 December 2022, up 1.3% QoQ and up 12.4% YoY. Attrition (on the last 12-month basis) was at 21.7% in Q3 FY23 as against 23.8%% in Q2 FY23 and 19.8% in Q3 FY22.
C Vijayakumar, CEO & managing director, HCLTech, said: We have delivered a strong performance this quarter across all key metrics - revenue growth, margin expansion, booking growth and people metrics.
Our strong revenue growth of 13.1% YoY CC is led by our Services business which grew 15.4% YoY CC; and strong revenue growth of 5.0% QoQ CC is led by HCLSoftware. Our margins at 19.6% this quarter, increased 60 basis points YoY.
Our unique position as the only IT Service provider globally to be rated as a leader in all six Gartner IT Services Magic Quadrants is being acknowledged by the market, evident from the strong new deal bookings this quarter of US$ 2.35 Bn, up 10% YoY.
The booking growth was led by IT operating model transformation, cloud adoption and large vendor consolidation deals. We are confident to deliver industry leading growth over the medium term supercharged by our positioning, our strong propositions and our passionate people.
Prateek Aggarwal, chief financial officer, HCLTech, commented: We are enthused with the overall well-rounded Q3 performance. Revenue at Rs 26,700 crore is up 19.6% YoY, on the back of strong Services business growth of 22% YoY.
During the quarter, we crossed important milestones of Rs 5,000 crore and Rs 4,000 crore for EBIT and PAT respectively for the very first time. Profitability was at all-time high with EBIT at Rs 5,228 crore (up 22.8% YoY) and PAT at Rs 4,096 crore (up 19% YoY).
ROIC stands at solid 30% and 37+% for the company and Services business, respectively. Cash conversion continues to be healthy with LTM OCF/NI at 111% and FCF/NI at 100%.
HCL Technologies (HCL) empowers global enterprises with technology for the next decade, today. HCL offers its services and products through three business units: IT and Business Services (ITBS), Engineering and R&D Services (ERS) and Products & Platforms (P&P).
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