DBT Bureau
Bengaluru, 12 July 2024
HCL Tech on Friday reported a 20%in its consolidated net profit to Rs 4,257 crore for the first quarter ended June.
The Shiv Nadar-promoted IT firm’s revenue increased 6.7% to Rs 28,057 crore in Q1FY25 as compared to Rs 26,296 crore reported a year ago. Revenue in dollar terms stood at $3.364 billion, a fall of 1.6% over the previous quarter.
The company retained its constant currency revenue growth guidance for FY25 in the range of 3-5%. Operating margin guidance was also maintained at 18-19% for FY25.
“Our Q1 revenue and EBIT performance was slightly better than our expectations. We clocked in $2 billion TCV (Total Contract Value) of new business bookings. We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies,” C Vijayakumar, CEO & MD of HCL Tech said in an exchange filing.
The Noida-headquartered company’s operating margin fell 50 basis points on sequential basis to 17.1% during the first quarter.
Among geographies, the company saw an 8% rise in its Americas division on a year-on-year basis, while Europe saw a 3% rise during the first quarter. In verticals, the financial services segment saw a decline of 1.3% on a YoY basis, while manufacturing grew 3.5%. The most growth was seen in the telecommunication, media, and entertainment vertical at 70%.
The company’s total headcount declined in the June quarter owing to the divestment of a business. Its total employee count declined by 8,080 employees to 219,401. Its attrition for the first quarter was down to 12.8% from 16.3% a year earlier.
