Home / Companies / Company Results /  HCL Tech Q2 net profit up 18.5%

HCL Technologies Ltd on Friday posted a net profit of Rs3,142 crore; up 7.4% quarter-on-quarter (q-o-q) and 18.5% year-on-year for the quarter ended September '20.

Its revenue grew 4.2% q-o-q to Rs18,594 crore in the quarter under review, from Rs17,528 crore in the corresponding quarter last year, with a sequential revenue growth of 4.5% in constant currency terms and 21.6% Ebit (earnings before interest and tax) margin.

"This growth momentum was driven by our continued leadership in digital transformation and cloud businesses and a strong stability in the products and platforms segment, all of which continue to open diverse growth avenues for us. Our investments over the last few years in next-gen technologies have held us in good stead during these difficult times and position us strongly to leverage the emerging market opportunities." said C. Vijayakumar, president and chief executive officer, HCL Technologies Ltd.

During this period, HCL signed 15 transformational deals, led by key industry verticals, including life sciences and healthcare, public services (energy & utilities), and manufacturing. There was a broad-based performance in Q2 with all growth engines firing and all the geographies and verticals returning to smart positive sequential growth, the company said in a statement.

In the guidance for Q3 and Q4, the company said that it expects revenue to grow q-o-q by an average of 1.5% to 2.5% in constant currency terms and FY’21 EBIT to be between 20.0% and 21.0% for FY’21.

“The standout performance for the quarter has been the cash generation and conversion ratios. Our Operating Cash Flow (OCF) and Free Cash Flow (FCF) stand at handsome $2,692 mn and $2,444 mn respectively on Last-Twelve-Month basis, with OCF/NI and FCF/NI conversion at an impressive 161% and 146% respectively." said Prateek Aggarwal, CFO, HCL Technologies Ltd.

As on 30 September, 2020, HCL’s full-time headcount stood at 153,085.

Last month, HCL Technologies Ltd replaced ITC Ltd, India's largest cigarette maker, to become the nation's 10th most valued firm by market capitalization on BSE.

According to BSE, HCL Technologies' market capitalization stood at Rs2.21 trillion, with its shares trading at a record high of Rs810.95 on the BSE. The IT major's shares have risen nearly 43.3% so far this year. The company provided a surprising mid-quarter update, guiding for above-expected revenue growth of at least 3.5% quarter on quarter constant currency and operating margin in the range of 20.5-21% for second quarter of fiscal year 2021.

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