HCL Tech Q1 results: Profit rises 9.9% YoY to Rs 3,214 crore, misses estimates; announces interim dividend

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HCL Technologies on Monday posted a 9.9 percent rise in consolidated net profit to Rs 3,214 crore for the June 2021 quarter.

HCL Tech Q1 results: Profit rises 9.9% YoY to Rs 3,214 crore, misses estimates; announces interim dividend
IT company HCL Technologies on Monday reported a 9.9 percent rise in consolidated net profit to Rs 3,214 crore for the quarter ended June 30, 2021.
In the corresponding quarter last year, the company posted a net profit of Rs 2,925 crore. CNBC-TV18 Poll had predicted a profit of Rs 3,253 crore for the quarter under review.
Noida-based company's revenue grew 12.5 percent to Rs 20,068 crore in the quarter under review, from Rs 17,841 crore in the corresponding period last year.
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HCL Technologies said its co-founder Shiv Nadar had stepped down as managing director of the company with effect from July 19, 2021. Nadar will continue as the company's chairman emeritus and strategic advisor to the board. The company has appointed C. Vijayakumar as the new managing director of HCL Technologies.
The company posted 11.7 percent year-on-year revenue growth in constant currency and 29 percent y-o-y growth in Mode 2 services in constant currency headlined by Cloud and Digital transformation deals.
In dollar terms, HCL Technologies' net income was up 12.8 percent at $43 million in the June 2021 quarter, while revenue was higher by 15.5 percent at $2,719.6 million in the reported quarter over the year-ago period.
During the quarter, HCL Technologies added 7,522 and its workforce strength stood at 176,499 employees. The attrition rate stood at 11.8 percent during the quarter.
The Board of Directors has declared an interim dividend of Rs 6/- per equity share of Rs 2/- each of the company for the financial year 2021-22.
"At HCL, we believe in purpose-driven growth, unifying social responsibility with our business goals. We have a strong and continued commitment to integrate sustainability and ESG priorities into our business as they are the key drivers for delivering strong value and building lasting and productive relationships with clients, employees and stakeholders," said Shiv Nadar, chief strategy officer, HCL Technologies Ltd.
"We posted 11.7 percent YoY revenue growth in constant currency and 29.0% YoY growth in Mode 2 services in constant currency headlined by Cloud and Digital transformation deals. We remain very confident of good QoQ growth for the rest of this year, enabled by 37 percent YoY growth in bookings and 7,500+ net hiring this quarter," said C Vijayakumar, chief executive officer, HCL Technologies Ltd.
"Despite the pandemic impacting India badly during the quarter, HCL delivered 8.5% growth in Profit After Tax quarter-on-quarter at Rs 3,214 crore ensuing net income margin of 16%. In line with the profits, we generated an Operating Cash Flow of $447 million and Free Cash Flow of $403 million, being 102% and 93% of PAT respectively. Our OCF & FCF yields remain amongst the highest among peers at 6.2% and 5.5% respectively. During the quarter, we paid out Rs 4,341 crore of dividend, post which our net cash was at $2053 million at the end of the quarter," said Prateek Aggarwal, CFO, HCL Technologies.
The results came after the close of the market hours. Shares of HCL Technologies ended at Rs 1,000.20, down by Rs 4.70, or 0.47 percent on the BSE.