IT services major HCLTech on Wednesday raised its full-year revenue growth guidance to 13.5-14.5 per cent, from 12-14 per cent on a constant currency basis, citing strong order bookings and pipeline. This after it reported a consolidated net profit of Rs 3,489 crore for Q2FY23, an increase of 7.09 per cent year-on-year (YoY) on the back of new order wins, HCL said in a regulatory filing.
The revenue of the IT firm grew 19.5 per cent to Rs 24,686 crore, against Rs 20,655 crore a year ago. Its services business grew 18.9 per cent YoY, led by strong demand for cloud, engineering, and digital services, the IT major said. The services revenue is expected to grow 16–17 per cent YoY in FY23, according to the company’s guidance.
On a sequential basis, HCLTech’s net profit saw a 6.3 per cent increase from Rs 3,283 crore in the previous quarter. The revenue jumped 5.2 per cent against Rs 23,464 crore in Q1 FY23.
“HCL Tech has delivered yet another solid performance this quarter. This is a validation of the strategic choices we made and the effectiveness of our operational framework. Our bookings and pipeline continue to be very strong, which augurs well for our future growth. These reflect our constant and continuing efforts to supercharge outcomes for all our stakeholders. Our new brand positioning of Supercharging Progress has been well received and I am confident it will help us deliver on our strategic priorities,” said C Vijayakumar, CEO and managing director, HCLTech.
The company’s earnings before interest and taxes (Ebit) margin contracted by 1 percentage point over the same period a year ago. The margin for the quarter stood at 18 per cent.
Prateek Aggarwal, chief financial officer, HCLTech said: “We have significantly improved Ebit margins sequentially, led by operating leverage and efficiencies, despite the impact of salary increments for the largest section of our people. Our H1 growth and deal wins led us to increase our revenue guidance to 16 per cent-17 per cent for services, and 13.5 per cent-14.5 per cent at the company level, reflecting of our strong growth visibility.”
The company has reported a net addition of 8,359 employees in the quarter. The headcount now stands at 219,325. The attrition rate in the IT services business remained high at 23.8 per cent in last 12 months (LTM).
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