New Delhi, Apr 22 (PTI) HCL Technologies on Tuesday posted an 8.1 per cent increase in consolidated net profit at Rs 4,307 crore for March quarter 2024-25, mainly on account of large deals with a total contract value of about Rs 25,500 crore.
The company had logged a profit of Rs 3,986 crore for the same period a year ago, it said in a regulatory filing.
"We grew 2.9 per cent on a year-on-year basis. Our operating margin for the quarter came in at 17.9 per cent. Our services business grew 0.7 per cent sequentially and 2.7 per cent year-on-year," HCL Tech CEO and Managing Director C Vijayakumar said.
Revenue from operations increased 6.1 per cent to Rs 30,246 crore from Rs 28,499 crore in the March quarter 2023-24.
Vijayakumar said that the company bagged deals worth USD 3 billion (around Rs 25,500 crore).
"We had a very strong quarter. In fact, the second highest after the September 23 quarter, which was on the back of a mega deal, which all of you know.
"This quarter, we brought in USD 3 billion in net new booking. At the fiscal year level, the total new booking stands at USD 9.4 billion. The strong booking was well-balanced across service lines, geographies, and verticals," he said
For the year ended March 31, 2025, HCL Technologies posted an increase of about 11 per cent in net profit at Rs 17,390 crore from Rs 15,710 crore in FY24.
Revenue from operations rose 6.5 per cent to Rs 1,17,055 crore year-on-year.
"FY25 marks the third consecutive year of our services business outpacing our similar-sized peers," Vijayakumar said.
For FY26, the company expects revenue growth of 2-5 per cent on year-on-year basis in constant currency terms and its services revenue growth too is expected to be in the same range which is higher than its major rivals.
Talking about guidance, Vijayakumar said that discretionary spending will continue to be subdued in this environment.
"Geopolitical factors like tariff and deglobalization are expected to impact IT services. In the coming months, it will be an important topic to observe and monitor the ongoing development.
"As we look beyond the uncertain short term, I strongly believe there will be strong growth opportunities emerging out of the market uncertainty," he said.
On the range of growth guidance, Vijayakumar said that HCL Tech will be able to deliver 2 per cent growth even if it doesn't grow for the next four quarters.
"We have certain scenarios which we have in mind as we have planned out this year but needless to say the environment is quite uncertain," Vijayakumar said.
Talking about impact of US tariff impact, he said it will play out much faster in consumer and manufacturing segments.
"But if the tariff impact were to play out, I don't think any vertical will be left behind. All industries would be impacted.
"The biggest impact will be on the cost for clients. Their kind of focus on using generative AI to drive high efficiency in every aspect of their business will become the central stage of all the conversation," he said.
Vijayakumar also said there is uncertainty and there is going to be definitely a deterioration in the discretionary spend of clients.
"We think AI-led efficiency is really the biggest theme where there can be large opportunities," he said.
HCL Tech recorded 5.3 per cent growth in America's -- its largest IT services market. The rest of the world business grew 4.7 per cent and Europe grew by 3.5 per cent during the fiscal year.
The company's total headcount increased by 2,665 to 2,23,420 in FY'25.
"In terms of freshers, this quarter, we added 1,805 freshers. If you recall, we made a conservative projection last quarter to add about 1,000. We have been done in excess of that. That's in line with our plans that move for the basis. On a full-year basis, the number of freshers we added for fiscal 25 is 7,829. Attrition is at 13 per cent," HCL Tech Chief People Officer, Ramachandran Sundararajan said. PTI PRS PRS NSD
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