HCL Tech net profit up 6.8% QoQ at Rs 4,257 crore; surpasses estimates
HCLTech, India's third largest software exporter, reported a 6.8% sequential growth in net profit at ₹4,257 crore, beating ET's analyst poll estimates of ₹3,745 crore. A fatter bottom-line came largely on the back of a spike in non-core income in the June quarter otherwise marked by sluggish demand.
Revenues and margins declined sequentially. The company's EBIT came at ₹4,795 crore, down 4.4% QoQ & up 7.5% YoY.
Following the Tata Consultancy Services (TCS) earnings Thursday, several technology stocks surged to lifetime highs Friday, and were at the forefront of the stellar showing of the broader stock indices. TCS led the pack of five technology companies, including HCL Tech, that were the top five Nifty gainers.
HCLTech's Consolidated revenue stood at ₹28,057 crore, rising 6.7% from a year earlier and down 1.6% sequentially. The Noida-based firm attributed it to a «seasonally weak quarter» and just like its larger peer Tata Consultancy Services (TCS), the company signalled that discretionary spend is unlikely to be very different from the last fiscal. «Although some actions show that things could have bottomed out, I do not want to take that call because there have been so many false starts in the last year to when the recovery will happen,» C Vijayakumar, CEO and MD, of HCLTech said.
Operating margin contracted to 17.1% from 17.6% in the March quarter. HCLTech had given a revenue guidance of 3-5% for FY25, and maintained margin guidance at 18-19% for the current fiscal, unchanged from FY24. Vijayakumar expects
