HCL Q3 profit rises 16% YoY to Rs 3,037 crore

HCL Q3 profit rises 16% YoY to Rs 3,037 crore
Photo Credit: VCCircle
17 Jan, 2020

Noida-based information technology services company HCL Technologies has reported a 16% rise in profit.

The company’s net profit rose to Rs 3,037 crore, for the third quarter ended December 2019 from Rs 2,611 crore in the year earlier, according to local exchange filings.

Revenue rose 15.5% to Rs 18,135 crore YoY.

Earlier, brokerage firm Motilal Oswal Financial Services expected a 16.7 % YoY growth in HCL’s Q3 revenue at Rs 18,324.9 crore.

 “We continue our stellar performance over the years and have now crossed a revenue run rate of US$ 10 bn this quarter,” C Vijayakumar, president and CEO at HCL Technologies said in a statement.

EBITDA (earnings before interest, tax, depreciation and amortization ) went up 22.60% to Rs 4,470 crore against Rs 3,647 (YoY).

HCL said its constant currency growth for FY’20 will be between 16.5%-17.0%, and operating margin (EBIT) range will be 19.0% to 19.5%.

The revenue guidance is based on FY’19 (April to March) average exchange rates, the statement added.

According to HCL, its cash generation was strong, with operating cash flow at $709 million and free cash flow above $650 million. Net cash was now at $ 1.1 billion by the end of December.

HCL saw a decline in its attrition rate to 16.8% as of December 31 from 17.8% a year ago with a net addition of 16,845 employees.

“We have stepped into the new decade of innovation and reinvention. It is time to re-emphasize our focus on emerging technologies and prepare ourselves for the next phase of disruption, ” Shiv Nadar, chairman and chief strategy officer at HCL Technologies said.

The technology giant has seen major deals in the recent past. It signed a digital transformation deal with Volvo Cars to help in its large-scale transformation programme, which includes organisation-wide technology shifts to help Volvo Cars capitalise on new opportunities and improve internal business processes and customer experiences.

HCL also opened two other delivery centres in Lithuania to cater its digital transformation capabilities for clients in the Baltic, Nordic and Benelux regions of the world.

The technology major opened a global delivery centre in Canada to focus on application development, support, testing and servicing global clients.