HCL Technologies has released its FY25 third-quarter results, which demonstrate both strategic ambitions and strong financial success.
These are the key conclusions drawn from the results that were revealed on January 13, 2025.
Growth in Net Profit
HCL Technologies achieved a 5.5% year-on-year (YoY) increase in consolidated net profit, reaching ₹4,591 crore, up from ₹4,350 crore in Q3 FY24.
Additionally, this shows an 8.4% increase over the prior quarter (Q2 FY25).
Performance of Revenue
At ₹29,890 crore, the company’s revenue increased 5.1% year over year.
The steady increase in revenue highlights HCL’s dominant position in the market and the high demand for its offerings.
Future Guidance and Attrition
Compared to the previous year, when it was 12.8%, the employee attrition rate increased little to 13.2%.
HCL Technologies projects EBIT margins to be between 18% and 19% for FY25, with sales growth of 4.5% to 5% in constant currency.
Insights into Business Performance
With a 6.2% YoY growth, the Americas area accounted for 65.5% of total sales.
HCL Technologies secured new deals worth $2.1 billion during the quarter, highlighting its competitive edge in the IT services market
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Important Financial Data
EBIT (Earnings Before Interest and Taxes): ₹5,821 crore, representing 19.5% of revenue, indicating a 3.7% YoY rise and an 8.6% QoQ increase.
EBIT Margins: Retained at 19.5%, indicating a QoQ gain of 93 basis points (bps).
Cash position: With a healthy cash position of ₹27,707 crore, the company demonstrated excellent cash flow performance.
Notice of Dividends
To commemorate 25 years of its public listing, the board announced a special dividend of ₹6 per share in addition to the fourth interim dividend of ₹18 per share. With a record date of January 17, 2025, the dividend is scheduled to be paid on January 24, 2025.
In conclusion
The robust demand for digital, AI, and software services is the driving force behind HCL Technologies’ Q3 FY25 earnings.
HCL is well-positioned in the competitive IT market thanks to its strategic objectives, strong financial metrics, and optimistic outlook for the future.
It is advised that stakeholders and investors keep up with the company’s latest advancements and marketing tactics.