
HCL Technologies Limited (HCLTech) unveiled its Q3 FY25 financial results, emphasizing robust growth and strategic positioning driven by its leadership’s vision.
Key Financial Highlights:
- Revenue: ₹29,890 crore, reflecting a 3.6% QoQ and 5.1% YoY growth.
- Net Profit: ₹4,591 crore, marking an 8.4% QoQ rise and a YoY increase from ₹4,351 crore.
- EBIT Margin: Improved to 19.5%, up 93 bps QoQ.
- Cash Balance: Reached a record ₹27,707 crore.
Leadership Comments:
- Roshni Nadar Malhotra, Chairperson:
“HCLTech is well-positioned as AI-led transformation brings new growth opportunities. We continue to deliver industry-leading performance with governance and sustainability at the core.” - C Vijayakumar, CEO & Managing Director:
“HCLTech delivered another quarter of solid growth at 3.8% QoQ in constant currency and EBIT at 19.5%. This growth is powered by broad-based performance across business lines and geographies. With new deal bookings at $2.1 billion, we are positioning for a transformative future driven by AI-led propositions across services and software offerings.” - Shiv Walia, CFO:
“Our razor-sharp focus on achieving top-line growth with healthy margins is reflected in our highest-ever EBIT of ₹5,821 crore. LTM ROIC stood strong at 36.6%, with cash conversion outpacing our 5-year FCF/NI average. We end the quarter with our highest-ever cash balance.”
Strategic Highlights:
- Deal Momentum: New deal wins of $2.1 billion affirm client confidence.
- AI-Led Growth: Continued demand for AI-driven services and software.
- Operational Excellence: Enhanced cash flow and margin expansion reflect disciplined execution.
Q2 FY25 Recap:
- Revenue: ₹28,862 crore
- Net Profit: ₹4,235 crore
- EBIT Margin: 18.6%
- Total Income: ₹29,318 crore
- Interim Dividend: ₹12 per share
HCL Tech Q3 Results: Key Analyst Insights
- Discretionary spending: Witnessed an uptick, especially in the BFSI sector starting August and continuing into October.
- Furloughs: Expected to mirror last year’s impact.
- Manufacturing & Auto: The segment remains soft; while it is no longer an incremental drag, it has yet to show signs of a rebound.
- Hi-tech vertical: Showing early signs of recovery, with management monitoring sustained trends.
- Workforce focus: 80% of HCLTech’s US workforce is visa-independent.
- HPE CTG acquisition: Focused on expanding its telecom client base and growing in Japan and Europe.
Key Metrics to Watch
- BFSI performance after Q2 decline.
- Updates on the auto segment, where management flagged weakness.
- Deal wins, consistently hovering around $2 billion in recent quarters.