HCL Tech reports a 20% increase in the Q3 profits | Business Upturn

HCL Tech reports a 20% increase in the Q3 profits

The forecasts of the analysts called for a profit gain of 11% and a sales increase of 17%.

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The consolidated net profit for the third quarter that HCL Technologies announced on January 12 was 4,096 crore, which is a 20 percent increase from the previous year’s figure of 3,442 crore.

According to a statement with the stock exchange, the business reported that its consolidated revenue from operations climbed by 19.61 percent, reaching 26,700 crore as compared to 22,321 crore in the same quarter of the previous year.

A survey conducted by brokerages revealed that consolidated revenue was anticipated to reach Rs 26,026 crore, representing an increase of 16.6 percent year-on-year (YoY), and that consolidated profit after tax (PAT) was anticipated to climb 10.6 percent YoY to reach Rs 3,796 crore.

The increase in revenue expressed in terms of constant currency was 5% from the previous period and 13.1% from the previous year (YoY).

The firm reported winning 17 significant agreements during the quarter, seven of which were in the services segment and ten of which were in the software segment. There was a 10 percent year-over-year increase in the overall contract value of new deal wins, which came in at $2.35 billion.

In addition, an interim dividend in the amount of Rs. 10 per equity share was approved by the Board of Directors for the Fiscal Year 2023. The date of the record is the 20th of January. The first of February is the date that payments are due.

The EBIT margin that HCL Tech reported for the quarter was 19.6 percent, which is an increase of 165 basis points (bps) sequentially. The increase in net margin from the previous period was 117 basis points, bringing it to 15.3 percent.

The firm stated that it anticipates sales growth of between 13.5 and 14 percent year over year (in constant currency) for the fiscal year FY23. The income from services is anticipated to increase by 16-16.5 percent year over year in constant currency. It was stated that the EBIT margin will probably decrease to 18-18.5 percent.