HCL Tech Q3 Net Profit Up 31%, Crosses $10-bn Revenue Milestone In 2020
Riding the digitisation wave, HCL Technologies posted a strong set of numbers for the December quarter, with net profit up 31.1 per cent year-on-year (yoy) at Rs 3,982 crore as compared with the corresponding quarter a year ago. The net profit rose 26.7 per cent on a sequential basis. The net income was also due to lower tax expenses, primarily due to reversal of tax provisions related to prior years, according to the company.
The Noida headquartered company’s consolidated revenue was up 6.4 per cent to Rs 19,302 crore yoy and 3.8 per cent sequentially. The EBIT margin of the IT services provider expanded 265 basis points on a yoy basis to 22.9 per cent in the October-December period -- a 24 quarter high.
The company’s revenue also crossed the $10-billion milestone in 2020, delivering 3.6 per cent YoY growth in constant currency.
Revenue is expected to grow 2-3 per cent in constant currency for Q4 while Ebit outlook for FY21 is now increased to a range of 21-21.5 per cent, up from 20-21 per cent announced previously.
ALSO READ: Gas distribution giant GAIL announces Rs 1,046.35 cr share buyback
The company won 13 transformational deals across industry verticals, including life sciences and healthcare, technology and financial services. It has classified $25-million above services deals as transformational deals. This booking was 13 per cent higher than the December quarter of 2019 for the company.
“We continue to see a strong pipeline and are confident of further acceleration of bookings in the coming quarters. Our Mode 2 and Mode 3 businesses did a lot of heavy lifting during the quarter. Mode 2 revenues delivered 25 per cent yoy growth.
The robust performance in Mode 2 is driven by digital and cloud businesses which reflects the relevance in the completeness of our enterprise digital transformation propositions. It has proved its mettle this quarter,” said C Vijayakumar, President & CEO, HCL Technologies.
The products and platforms business grew 9.3 per cent yoy. It won 700 new customer footprints during the quarter. Five out of seven verticals showed growth momentum, led by media and telecom.
The company also declared dividends of Rs 4 per share for the quarter.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
The Battle For Depositors: US Lenders Ramp Up Efforts Amidst Rate Uncertainty
In the competitive landscape of the US banking sector, retaining depositors is paramount for lenders seeking to maintain... Read more
Beyond Capital: Unveiling The Complexities Of Bank Failure Prediction
In the realm of banking, the ability to predict and prevent failures is paramount for financial stability and consumer c... Read more
Central Banks And The Economic Horizon: Steering Through Uncertaintie
In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more
Transforming Financial Operations With Robotic Process Automation
Author: Ricardo Goulart ... Read more
The Role Of Machine Learning In Fraud Detection
Author: Gerardine Lucero  ... Read more
Principles Of Islamic Banking And Finance
When it comes to banking, a significant new contender has entered the ring. The principles of Islamic banking and financ... Read more