HCLTech on Thursday reported a strong growth in its Q4 net profit and beat street and analyst estimates, even when other big players failed to impress investors. HCLTech’s consolidated net profit in Q4 came in at Rs 3,981 crore, up 10.61% against Rs 3,599 crore reported during the same period last year. The company’s revenue from operations came in at Rs 26,606 crore against an estimated revenue of Rs 26,801 crore from brokerages.
HCLTech surprised on the positive side as the Q4 results came out in-line with the expectations. There was a mild miss in revenue however, the profits came out a little better than expected aided by growth in other income. Overall, their revenue was down 0.3% QoQ, however, their services business grew 0.6% QoQ which is a positive. The guidance of 6-8% in CC for FY24 is good and so is the margin guidance of 18-19%,” said Veer Trivedi of SAMCO Securities.
The EBIT Margin for HCLTech stood at 18.2% against the poll of 18.4%, slightly lower than estimated, but largely inline as compared to the miss by the other peers. Board of the company announced an interim dividend of Rs 18 per equity share for the FY24. The record date of April 28, 2023 is fixed for the payment of the aforesaid interim dividend. The payment date shall be May 9, 2023.
“Our pipeline is near all-time high, which reflects our differentiated business mix and strong client demand for our offerings. We have added 3,674 employees this quarter and overall employee strength has now grown beyond 225000. All these set us well in FY24 for a healthy revenue growth in 6-8 percent range with operating margins in 18-19 percent range,” said C Vijay Kumar, CEO & MD, HCLTech.