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HCL Tech Q1 net profit up 9.9 percent to Rs 3,214 cr; company confident of double-digit revenue growth in FY22

HCL Tech Q1 net profit up 9.9 percent to Rs 3,214 cr; company confident of double-digit revenue growth in FY22
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HCL applied sciences net income go up 9.9% to Rs 3,214 crores. The company is confident to see double digit revenue growth by FY22

IT companies main HCL Technologies on Monday posted a 9.9 percent rise in consolidated net profit to Rs 3,214 crore for the June 2021 quarter, and exuded confidence in logging double-digit fixed forex growth in FY22 on the again of a powerful deal pipeline.

Also, Shiv Nadar, a pioneer in the Indian IT sector, has stepped down because the managing director and board member of the company, a 12 months after handing over the reins of the IT main to his daughter, Roshni Nadar Malhotra.

C Vijayakumar, president, and CEO of the company will tackle the function of managing director with the title of CEO and MD for a time period of 5 years with impact from July 20.

The Noida-headquartered company had registered a net profit of Rs 2,925 crore in the April-June 2020 quarter (as per US GAAP). Its revenue grew 12.5 percent to Rs 20,068 crore in the quarter underneath assessment, from Rs 17,841 crore in the year-ago interval.

“We posted an 11.7 percent year-on-year revenue growth in fixed forex and 29 percent y-o-y growth in Mode 2 companies in fixed forex headlined by cloud and digital transformation offers.

“Both booking and pipeline remain healthy, and the pipeline expanding to the new levels across the board, we continue to see a convergence of application and infrastructure integrated opportunities,” HCL Technologies President and CEO C Vijayakumar instructed reporters in a digital briefing.

This is an efficient signal for the longer term because it makes HCL Tech’s growth extra broad-based and helps speed up growth throughout all service traces, he added.

Vijayakumar mentioned the company is confident of good quarter-on-quarter growth for the remaining of this 12 months, enabled by 37 percent y-o-y growth in bookings and seven,500-plus net hiring this quarter.

The company’s first-quarter TCV (complete contract worth) of new deal wins was at USD 1,664 million, up 37 percent year-on-year. In fixed forex phrases, HCL Tech’s revenue in the June 2021 quarter grew 11.7 percent y-o-y.

The revenue in fixed forex phrases is predicted to develop in double digits, whereas Ebit (earnings earlier than curiosity and tax) margin is predicted to be between 19 percent and 21 percent for FY22.

In greenback phrases, HCL Technologies’ net revenue was up 12.8 percent at USD 43 million in the June 2021 quarter, whereas revenue was increased by 15.5 percent at USD 2,719.6 million in the reported quarter over the year-ago interval.

HCL Technologies introduced its numbers after the shut of market hours. Shares of HCL Technologies closed at Rs 1,000.20 apiece, marginally decrease from the earlier shut on the BSE.

Sanjeev Hota, head (analysis) at Sharekhan by BNP Paribas, mentioned HCL Tech reported below-than-expected revenue growth and working profitability, whereas net profit remained in line with its expectation on the again of decrease tax provisions.

Larger rivals Tata Consultancy Services (TCS) and Infosys have additionally posted sturdy growth numbers in the June quarter on the again of sturdy demand from clients trying to leverage digital applied sciences in the post-pandemic world.

TCS had posted 18.5 percent growth in consolidated revenues to Rs 45,411 crore in the June 2021 quarter, whereas Infosys noticed its high line (revenue) rising 17.8 percent to Rs 27,896 crore. Infosys has raised its revenue growth outlook for the total fiscal to 14-16 percent (from 12-14 percent beforehand), buoyed by a sturdy deal pipeline and “strong” Q1 efficiency.

Wipro’s IT companies revenue grew 12.2 percent sequentially to USD 2,414.5 million (25.7 percent y-o-y), and the company has supplied a powerful revenue growth outlook of 5-7 percent sequential improve in the September quarter.

At the top of the June 2021 quarter, HCL had 1,76,499 staff with a net addition of 7,522 individuals. Its attrition for info expertise (IT) companies (on the final 12-month foundation) was at 11.8 percent.

During the briefing, HCL Technologies Chief Human Resources Officer (CHRO)Apparao V V mentioned that final 12 months, the company had onboarded 14,600 freshers globally.

“This year, we are targeting anywhere between 20,000-22,000 freshers and I will not be surprised if we cross this number…in Q2, we are targeting (to onboard) 6,000 (freshers),” Apparao mentioned.

He added that the company, which had given wage hikes in October final 12 months, will supply wage hikes from July 1 because it will get again to its common cycle.

Apparao mentioned HCL additionally expects to vaccinate 100 percent of its staff in the continued quarter. Currently, about 74 percent of its staff have been inoculated.

Asked about bringing staff again to the workplace, Apparao mentioned that presently, about three percent of the staff in India are coming to the office, whereas others proceed to work at home.

“We will take (a call on) it as we go…depending on the customers’ needs,” he added.

The board of administrators has declared an interim dividend of Rs 6 per fairness share for the monetary 12 months 2021-22. The document date of July 28, 2021, has been mounted for the fee of the interim dividend. 

Also Read: Shiv Nadar steps down as HCL Tech MD, C Vijayakumar to take over

Also Read: TCS, Infosys, Wipro, HCL, Tech Mahindra, Cognizant to cut 3 million jobs by 2022: Report

 

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