HCL Tech Q1 Results: Attrition declines to 16.3%, over 1,500 freshers onboarded in June quarter

IT major HCL Tech announced its April-June quarter results today, reporting a further decline in its attrition rate to 16.3 percent from 19.5 percent in the preceding March quarter of fiscal 2022-23. The company's total headcount as of June 2023 was 2,23,438, down by 2,506 sequentially.

During Q1FY24, HCL Tech hired 1,597 freshers which was a significant drop from 4,480 it hired in the March quarter.

The number of additions of freshers in the company has been inconsistent as it dropped from a high of 10,339 in September 2022 to 5,892 in December 2022.

“In Q1 FY24, more than 10,000 unique employees leveraged HCLTech's Value Creation Portal-a unique grassroots innovation platform that enables employees to contribute ideas and create value for HCLTech and its clients generating, reviewing, and approving 2,800+ ideas and implementing 1.050+ ideas that delivered customer signed-off value worth $200 million,” the regulatory filing by HCL Tech said.

“Continuing its tradition of ideapreneurship and a culture of innovation, in Q1 FY24 a total of 21 patents were filed and granted (10 filings, 11 grants),” it added.

HCL Tech's consolidated net-profit rises by 7.7%

The net profit of HCL Tech in Q1FY24 has missed street expectations as it rose by 7.65% year-on-year to ₹3,534 crore. The company has also declared an interim dividend of ₹10 per share.

Segment-wise HCL Technologies witnessed a significant increase in its IT and business services revenue during Q1FY24, reaching ₹19,642 crore, which represents a year-on-year growth of 15.06%. On the other hand, the revenue from engineering and R&D services experienced a single-digit growth of 3.66% YoY, amounting to ₹4,047 crore. Additionally, the revenue generated by HCL Software showed a 4.7% YoY increase.

"In Q1 FY 24, our revenue and people strength sequentially moderated in line with the demand environment. We delivered a 6.3% YoY growth in Constant Currency at the company level and 7.1% YoY CC for the Services business. We experienced double-digit YoY growth, in our largest verticals - Financial Services, Manufacturing, and Life Sciences and Healthcare fueled by large deals. These large deals helped offset cuts in client discretionary spending in these verticals. We are expecting other verticals to pick up as well shortly. This combined with the strength of our record-high pipeline enables us to maintain our guidance for the year," C Vijayakumar, CEO and MD of HCL Tech said.

On July 12, shares of HCL Tech settled 0.42 per cent lower at ₹1,110.05 apiece on the BSE.T