Homeearnings News

HCL Tech Q4 results: Net profit spikes 226% YoY to Rs 3,593 crore, revenue up 15.1%; beats estimates

HCL Tech Q4 results: Net profit spikes 226% YoY to Rs 3,593 crore, revenue up 15.1%; beats estimates

HCL Tech Q4 results: Net profit spikes 226% YoY to Rs 3,593 crore, revenue up 15.1%; beats estimates
Profile image

By CNBC-TV18 Apr 21, 2022 9:25:19 PM IST (Updated)

IT firm HCL Technologies on Thursday reported a 226 percent year-on-year (YoY) jump in net profit at Rs 3,593 crore for the fourth quarter ended March 31, 2022.

IT firm HCL Technologies on Thursday reported a 226 percent year-on-year (YoY) jump in net profit at Rs 3,593 crore for the fourth quarter ended March 31, 2022.

Recommended Articles

View All

In the corresponding quarter last year, the company posted a net profit of Rs 1,102 crore. CNBC-TV18 Polls had predicted a profit of Rs 3,334 crore for the quarter under review.
The company's revenue from operations for Q4 FY22 came in at Rs 22,597 crore, 15 percent higher than a year ago. The March quarter net profit at Rs 3,593 crore, was 4.4 percent higher on a quarter-on-quarter basis. On a comparative basis, the net profit was up 23.9 percent year-on-year.
"For comparison purposes, net income of Q4 FY'21 and full year FY'21 excludes the impact of one-time milestone bonus paid to employees ($78.8 million, Rs 575 crore net of tax) and the DTL (Deferred Tax Liabilities) on Goodwill impact in the tax expense ($165.1 million, Rs 1,222 crore) in Q4 FY'21," a company statement said. These one-time aspects in Q4FY21 had depressed the net profit numbers.
For full-year FY’22, the total contract value (TCV) of the new deal wins at $8,308 million registering 14 percent YoY growth. ACV is higher by 21 percent YoY on a full-year basis. TCV of new deal wins at $2,260 million for Q4, registering 6 percent QoQ growth.
Also Read:
Ten net new deal wins in Q4 of which services TCV at $2,216 million enabled by 6 net new large Services deal wins; products TCV at $54 million enabled by 4 net new large Product deal wins and a significant number of small deals.
"We have delivered yet another stellar quarter in our Services business, where the revenue is up 5.0 percent QoQ & up 17.5 percent YoY in constant currency. Over the last three quarters, our Services business has been consistently growing organically at 5 percent and higher, delivering one of the highest CQGR in the industry.
Our overall growth on a YoY basis stands at 12.7 percent which is better than the guidance led by strong momentum in Digital, Cloud and Engineering services. We continue to invest proactively to create a larger talent pool to address the demand," said C Vijayakumar, chief executive officer & managing director, HCL Technologies Ltd.
During Q4, the services business has grown at 5.0 percent QoQ cc (17.5 percent YoY cc), with a CQGR of 5.2 percent for three consecutive quarters. Engineering and R&D Services grew at robust 3.9 percent QoQ cc (23.7 percent YoY cc) driven by traction in digital engineering and IoT Works. IT and business services grew at healthy 5.2 percent QoQ cc (16.2 percent YoY cc), driven by the acceleration in cloud transformation and application and data modernization.
HCL has recorded strong client addition across all categories. On YoY basis, $100 million+ clients up by 1, $50 million+ clients up by 8, $20 million+ clients up by 22, $10 million+ clients up by 30, and $5 million+ clients up by 31, $1 million+ clients up by 73.
Total headcount at 208,877 with a net addition of 39,900 during the year, up by 23.6 percent YoY. Net additions during the quarter was brisk at 11,100, up 5.6 percent sequentially.
"We ended the financial year 2021-22 well, with revenue at $11.5 billion (Rs 85k crore), growth of 12.7 percent YoY in constant currency, and EBIT margin at 18.9 percent. Services revenue (ITBS and ERS) crossed the $ 10 billion milestone and registered a robust growth of 14.9 percent YoY in constant currency during the fiscal.
Net income (PAT) for the year came in at Rs 13.5K crore, 15.7 percent of revenue, translating to an EPS of Rs 49.77. Our cash generation and profit conversion to cash continue to be very strong with OCF at $2,265 million (125 percent of PAT) and FCF at $2,044 million (113 percent of PAT).
Our Board is happy to announce a dividend of Rs 18 per share for the quarter, taking the payout for the year to Rs 44 per share for the year, 88.4 percent of EPS, higher than the guided range of 75 percent," said Prateek Aggarwal, chief financial officer, HCL Technologies Ltd.
Net income grew at a robust 18.3 percent YoY in Q4. The stellar growth in net income is after excluding the impact of one-timers like the milestone bonus of $78.8 million and DTL on Goodwill of $165.1 million, last year.
The Board of Directors has declared an Interim Dividend of Rs 18 per equity share of Rs 2 each of the Company for the Financial Year 2022-23. "The record date of April 29, 2022 fixed for the payment of the aforesaid interim dividend has been confirmed by the board of directors. The payment date of the said interim dividend shall be May 11, 2022," the company said.
The results came after the close of the market hours. Shares of HCL Technologies ended at Rs 1,099.60, up by Rs 10.05, or 0.92 percent on the BSE.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!